The state of hiring received a boost Wednesday after nonfarm payroll reports showed that 534,000 positions were created in November.
The report by private payroll processing firm ADP shows that the 534.000 jobs added beat forecasts that projected a slightly smaller 525,000 for last month. This is the third straight month to see nonfarm payrolls outpace forecasts, a positive sign that the economy is adjusting from the post-summer slump in hiring.
“The labor market recovery continued to power through its challenges last month,” said Nela Richardson, chief economist, ADP. “November’s job gains bring the three month average to 543,000 monthly jobs added, a modest uptick from the job pace earlier this year
Like in the previous reports from October and November, the results were driven by strong performance in the service sector, led by the leisure and hospitality industry, which saw 134,000 openings filled in November.
Richardson said that the service sector are “more vulnerable to the pandemic” yet it dominated all of the jobs gains of late. She added that the emergence of the new Omicron variant of COVID-19 that was found in southern Africa last week did not affect the jobs recovery for the economy, noting that it remained too early to tell what impact it can have on employment.
The sector was battered by the COVID-19 pandemic and there was concern that the spread of the Delta variant would limit hiring during the economic reopening. The strength of the hospitality sector has been significant during the last three months for the part it has played in beating hiring expectations.
Large companies also made up the lion’s share of new hiring last month. Companies with 500 or more employees altogether took on 277,000 new hires while medium sized firms took on another 142,000 employees. However, smaller businesses with less than 50 employees were the worst performing, with only 115,000 jobs added here.
For all the positives surrounding this new report, its overall numbers were still below the 568,000 jobs added in September and the 571,000 created in October. However, it still shows positive momentum in the jobs market, two days before the U.S Department of Labor is expected to release its own report on non-farm payrolls.
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