The US has added the most private sector jobs in nearly two years, significantly outpacing projection from economists with 271,000 jobs added in December.
Key Takeaways
- Private-sector employment rose in December with 271,000 new jobs compared to just 175,000 predicted by economists, the most gains since February 2017.
- Small firms added 89,000 jobs, medium size firms added 129,000, and large companies added 54,000.
- ADP data helps provide context for the Labor Department’s employment report due on Friday.
The ADP report strengthens the current outlook on the labor market with an additional report released today showing that jobless claims are up on a weekly basis but down monthly and significantly down annually. November data for private sector jobs was, however, revised downward.
With ongoing uncertainty from the trade war between the US and China as well as the partial shutdown of the US government entering its second week, the labor market data shows that the market is holding firm with the monthly average increase now at 203,000 for 2018. Unemployment is now at its lowest level in about 49-years with economists predicting a further decrease to a rate of 3.6% on the way.
Winning..
Private Sector Added 271,000 JobsThe U.S. private sector added 271,000 jobs in December, driven by hirings at midsized businesses and in the service sector.
— John Batchelor (@batchelorshow) January 3, 2019
Expert Outlook
“Businesses continue to add aggressively to their payrolls despite the stock market slump and the trade war. Favorable December weather also helped lift the job market,” said Mark Zandi, chief economist at Moody’s Analytics. “At the current pace of job growth, low unemployment will get even lower.”
“We sticking with our 225,000 forecast, but the risk now is to the upside,” said Ian Shepherdson, chief economist Pantheon Macroeconomics.
Market Reaction
The gold market has been seemingly unaffected by the strong reports from the labor market, despite the fact that reports such as these typically negatively impact gold prices.
Gold is now nearing the $1,300/oz mark, something which will undoubtedly prove to be a crucial level of support/resistance if reached. Still trading near a six-month high, spot gold is currently trading at $1,290.30/oz with a 0.73% increase on the day which has seen a high of $1,292.36/oz and a low of $1,278.94/oz. February Futures last traded at $1,292.30/oz, up 0.64%.
Gold Price Chart
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