US private sector jobs grow
Washington, November 30, 2011
US private sector job growth accelerated in November as employers created the most jobs in nearly a year, prompting economists to raise their forecasts for Friday's more comprehensive US labor report.
The ADP National Employment Report on Wednesday showed private employers added 206,000 jobs this month, surpassing economists' expectations for a gain of 130,000 jobs. It was the biggest gain since December 2010.
"The ADP news is very good news. The private sector is adding jobs," said Wayne Kaufman, chief market analyst at John Thomas Financial in New York.
The government's November US labor market report on Friday, which includes both public and private sector employment, is expected to show a rise in overall nonfarm payrolls of 122,000 this month and a rise in private payrolls of 140,000.
Economists often refer to the ADP report to fine-tune their expectations for the payrolls numbers, though it is not always accurate in predicting the outcome.
US stocks opened sharply higher, though investors were also focused on an announcement of coordinated actions from major central banks to prevent a lack of liquidity in the global financial system.
October's private payrolls growth was revised up to an increase of 130,000 from the previously reported 110,000. The ADP report is jointly developed with Macroeconomic Advisers.
Meanwhile, a different report showed the number of planned layoffs at US firms edged down marginally in November, though job cuts for the year so far have surpassed 2010's total.
Employers announced 42,474 planned job cuts this month, down 0.7 percent from 42,759 in October, according to the report from consultants Challenger, Gray & Christmas. - Reuters