The private sector added 208,000 jobs in November, payroll processor ADP said Wednesday, as the labor market continued to defy mixed economic news.
Economists had estimated ADP would report 226,000 new private sector jobs, according to Action Economics’ survey. They expect the Labor Department’s closely watched survey on Friday to show 225,000 payroll gains by businesses, as well as federal, state and local governments.
ADP’s tally for October also was revised up by 3,000 to 233,000.
Last month, ADP estimated, small businesses added 101,000 jobs; mid-size ones, 65,000, and large companies, 42,000.
Trade, transportation and utilities led the job gains, with 49,000. Professional and business services added 37,000 and construction, 17,000. Manufacturers added 11,000.
“The tightening in the job market will soon prompt acceleration in wage growth,” said Mark Zandi, chief economist of Moody’s Analytics, which helps ADP compile the report.
While the initial estimates of private-sector job growth by ADP and the Labor Department show similar trends, the two reports have differed by a monthly average of 33,000 the past 25 months, according to High Frequency Economics.
Initial jobless claims, a reliable barometer of layoffs, have continued to trend down in recent months. Last month, factory activity remained strong but consumer spending rose modestly and a measure of business investment declined.
The U.S. economy is expected to slow in the current quarter after the best six-month stretch of growth in 11 years. That period marked a rebound from a first quarter contraction blamed on harsh winter weather. The labor market, however, has been generally consistent, posting average monthly gains of 229,000 this year, up from 194,000 in 2013.