On Wednesday, ADP National Employment report had unveiled that US private payrolls soared more than anticipated in December, mostly driven by a growing resilience in US labor market, though rapidly spreading omicron cases coupled with a record 4.5 million in voluntary quits in November could take the shines off job market growth over coming months, suggested analysts.
In point of fact, latest ADP National Employment Report, prepared by ADP Research Institute in collaboration with Moody’s Analytics, came against the backdrop of a sweeping uptick in omicron cases across the world’s No 1 economy, illustrating an underlying labor market strength, as thousands of events had reportedly been cancelled out due to the latest leg of pandemic resurgence.
Nonetheless, addressing to a quicker-than-expected recovery in US labor market, a chief economist at PNC Financial in Pittsburgh, Pennsylvania, Gus Faucher said, “The labor market continues to recover.
However, the Omicron variant is a substantial downside risk to the near-term labor market recovery”.
US private payrolls snowball in December
According to ADP National Employment Report that reveals US job growth on a monthly basis, US private employers had added 807,000 jobs last month, the strongest in seven months, that followed an increase of 505,000 positions in November, handsomely beating an analysts’ estimate of a rise of 400,000 jobs.
Aside from that, a broad-based hiring in US private sectors last month was mostly galvanized by an increase of 246,000 positions in leisure and hospitality industry, while professional and business services created 130,000 positions.
Apart from that, despite a drawdown in US manufacturing activity last month as cited by an ISM (Institute for Supply Management) survey report, US factories hired 74,000 more workers and construction sector added 62,000 jobs.