Employment in the private sector rose by 93,000 from October to November on a seasonally adjusted basis, according to ADP’s National Employment Report, released Wednesday.
Large businesses, defined as those with 500 or more workers, increased by 2,000, while employment among midsized businesses, defined as those with between 50 and 499 workers, increased by 37,000. Employment among small businesses, defined as those with fewer than 50 workers, increased by 54,000, including 49,000 in the service-providing sector and 5,000 in the goods-producing sector.
In addition, an estimated change of employment from September to October was revised upward from the previously reported increase of 43,000 to an increase of 82,000. The new numbers helped fuel a stock market rally on Wednesday, with the Dow Jones Industrial Average climbing about 230 points in midday trading.
This month’s ADP National Employment Report shows an acceleration of employment and suggests the nation’s employment situation is brightening somewhat. November’s gain in private-sector employment is the largest in three years. This is the tenth consecutive month of gains, which have averaged 47,000 during that period.
Nevertheless, employment gains of this magnitude are not sufficient to lower the unemployment rate, which likely will remain above 9 percent for all of 2011. Furthermore, given modest GDP growth in the second and third quarters, and the usual lag of employment behind GDP, it would not be surprising to see several more months of only moderate gains in employment even as the economic recovery gathers momentum.
According to the ADP Report, employment in the service-providing sector rose by 79,000 in November, the tenth consecutive monthly gain. Employment in the goods-producing sector rose by 14,000, the first monthly increase since March 2007. Construction employment fell by 3,000 during November, the smallest decline since June 2007. Manufacturing employment increased by 16,000.
In November, construction employment dropped 3,000. Construction employment has declined for over three years and the total decline in construction jobs since the peak in January 2007 is 2,304,000. Employment in the financial services sector was flat.
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