US Private Sector Adds 235,000 Jobs in December

Staffing Industry Analysts (01/05/23)

Employment in the US private-sector rose by 235,000 jobs in December, according to the ADP National Employment Report released. The report also found annual pay was up 7.3% in December.

ADP noted the job growth seen in November and December was led by consumer-facing service industries, with small and midsize establishments gaining 386,000 jobs, while large establishments offset those increases with a drop in employment of 151,000 jobs.

“The labor market is strong but fragmented, with hiring varying sharply by industry and establishment size,” said Nela Richardson, chief economist at ADP. “Business segments that hired aggressively in the first half of 2022 have slowed hiring and, in some cases, cut jobs in the last month of the year.”

Here are the jobs added in December:

  • Goods-producing, up 22,000
    • Natural resources/mining, down 14,000
    • Construction, up 41,000
    • Manufacturing, down 5,000
  • Service-providing, up 213,000
    • Trade/transportation/utilities, down 24,000
    • Information, up 1,000
    • Financial activities, down 12,000
    • Professional/business services, up 52,000
    • Education/health services, up 42,000
    • Leisure/hospitality, up 123,000
    • Other services, up 31,000

Additionally, the median change in annual pay was 7.3% for job stayers in December and 15.2% for job changers. December ushered in the largest decline in pay growth for job stayers in the series’ three-year history.

The ADP National Employment Report is an independent estimate of the change in US private employment and pay derived from actual, anonymized payroll data of client companies served by ADP.

It’s produced by the ADP Research Institute in collaboration with the Stanford Digital Economy Lab.

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