According to the ADP non-farm payroll report, 238K jobs were added in December and the biggest report since November 2012. The general analyst consensus was 199-200K added. Last month’s revision of 215K added jobs was revised upwards to 229K.
Moody’s Analytics Mark Zandi said the labor market ended on a high note in 2013, while “job gains are broad-based across industries, most notably in construction and manufacturing. It appears that businesses are growing more confident and increasing their hiring.”
Construction jobs were a bright spot adding 48K jobs in December, the largest increase since 2006. The pickup in home starts is likely the culprit as home builders are becoming the most optimistic in quite sometime, but home sales have been diverging from this outlook. “The housing market remains on track for a solid recovery and is likely to continue to improve over an extended period of time,” said Stuart Miller, chief executive officer Lennar Corp.
Professional services increased by 53K jobs in December. However, the trend continues, the services sector rose by 170K last month. These are typically part-time, low paying jobs. It is still left to be determined whether seasonality of job gains near the holidays will dissipate.
Large companies increased by 71K, medium businesses increased 59K and small businesses increased the most adding 108K jobs.