The ADP report for December 2010 it out and ADP is reporting a gain of 297,000 private sector jobs. This is the biggest service sector job gain, 270,000, in the history of the ADP report. The United States needs a good 175,000 jobs per month just to keep up with population growth and this is the first time we've seen any job growth like this for over 4 years, as reported by ADP.
This month’s ADP National Employment Report suggests nonfarm private employment grew
very strongly in December, at a pace well above what is usually associated with a declining unemployment rate. After a mid-year pause, employment seems to have accelerated as indicated by September’s employment gain of 29,000, October’s gain of 79,000, November’s gain of 92,000 and December’s gain of 297,000. Strength was also evident within all major industries and every size business tracked in the ADP Report.
According to the ADP Report, employment in the service-providing sector rose by 270,000 in December, the eleventh consecutive monthly gain and the largest monthly increase in the history of the report. Employment in the goods-producing sector rose 27,000, the second consecutive monthly gain and the largest since February 2006. Manufacturing employment rose 23,000, also the second consecutive monthly gain.
The below graph is manufacturing and goods producing jobs, which also gained.
Only the financial sector lost jobs by the ADP report, construction was flat.
Construction employment was unchanged in December, ending continuous monthly declines since June 2007. The decline in Construction employment, since its peak in January 2007, is 2,306,000. Employment in the financial services sector declined 8,000 in December.
Ya know how the rhetoric goes on how small business is the job growth engine of America? From this report, it is. Jobs created by size of business were small business, defined as less than 50 workers: 117,000. Medium sized businesses, or less than 500 workers created 144,000 in Decembe and big business (the guys with all of the cash), only 36,000.
The ADP report is a sampling, not a raw data tally. It's 340,000 businesses and the worker sample size of the private sector is 21 million.
Before you get too excited we might finally see some jobs, recall the ADP November report was 92,000 jobs (revised), yet the BLS reported only 50,000 private sector jobs for November. Remember, ADP is only private sector jobs in their report.