ADP Report Highlights: Were 153,000 New Jobs in December Enough?
The ADP National Employment Report
The ADP National Employment Report for December 2016 came out on Thursday, January 5, 2017. It indicated a weaker improvement in private-sector employment, with 153,000 new jobs added in December compared to the market expectation of 170,000. In November, it was 216,000.
Interested in IWM? Don't miss the next report.
Receive e-mail alerts for new research on IWM
Key highlights of the December report
Let’s look at the results of the report on a sectoral basis for December:
- service-providing sector: added 169,000 jobs
- professional and business: added 24,000 jobs
- education and health: added 29,000 jobs
- trade, transportation, and utilities (XLU): added 82,000 jobs
The 153,000 private payroll employment figure for December also included the following:
- small businesses: added 18,000 jobs
- medium businesses: added 71,000 jobs
- large businesses: added 63,000 jobs
Impact on the market
Fed’s gradual rate hike
The Fed hiked the interest rate on December 14, 2016. It was the second rate hike in a decade. It also announced that there could be three rate hikes in 2017. That’s an indication that the economy could be stronger in 2017. There will have be improvement in the labor market in order for the economy to strengthen.
In the next part of this series, we’ll see which indicators you should keep an eye on this week.