US December ADP nonfarm employment up 41,000…below expectations

Last month, the US private employment indicator fell short of market expectations.

On the 7th (local time), according to the Automatic Data Processing (ADP) employment report, US nonfarm employment increased by 41,000 from the previous month. It is a recovery from a 29,000 decline in November last year. However, it was 8,000 below the expert forecast (49,000).

ADP analyzed that, despite several months of weakness in the labor market, a year-end recovery emerged. Prior to this release, US private employment recorded declines in three of the past four months. Nela Richardson, ADP's chief economist, said, 'Large companies cut hiring, but small businesses overcame the November employment decline and raised hiring again at year-end.'

ADP's employment report is typically released two days ahead of the US Department of Labor's Bureau of Labor Statistics (BLS) employment report and is regarded as a kind of 'preview.' However, it does not always align with the government's official statistics.

Meanwhile, the US Department of Labor plans to release the November Job Openings and Labor Turnover Survey (JOLTS) on the same day. On the 9th, the Department of Labor's Bureau of Labor Statistics (BLS) will release the December employment report. Employment reports are cited as a key variable for future interest rate policy.