Yardeni Research President Ed Yardeni discusses the economic factors heading into 2026 in “Making Money.”
Private sector companies added 41,000 jobs in December, payroll processing company ADP said Wednesday.
This figure is below economists’ estimates of a gain of 47,000 jobs. The previous month’s payroll number was revised from an initially reported loss of 32,000 to a loss of 29,000.
“Small businesses rebounded from November job losses thanks to a positive year-end workforce, even as large employers pulled back,” said Nela Richardson, ADP’s chief economist.
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Participants at the Albany Job Fair in Latham, New York, USA, on Wednesday, October 2, 2024. (Angus Mordant/Bloomberg)
Education and health services added 39,000 jobs, which was the largest job creation in December. Leisure and hospitality added 24,000 jobs, while trade, transportation and utilities added 11,000. Financial activities and other services provided 6,000 and 5,000 jobs respectively.
A professor talks to a group of students in a lecture hall. (iStock)
Construction, natural resources and mining contributed 1,000 each.
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On the negative side, professional and business services lost 29,000 jobs this month. The information and manufacturing sectors lost 12,000 and 5,000 positions respectively.
The manufacturing sector lost 5,000 positions in December, ADP said. (Emily Elconin/Bloomberg via Getty Images)
Large companies – those with 500 or more employees – created 2,000 jobs in December. Companies with 50 to 499 employees added 34,000 employees. Companies with fewer than 50 employees created 9,000 jobs.
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Wage growth in December was little changed from last month. People who stayed in their jobs saw their wages increase by 4.4% over the previous year, while wage increases for those who stayed in their jobs rose slightly to 6.6% from 6.3% in November.
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The ADP data will be released before the Labor Department nonfarm payrolls, which are due Friday morning and could vary significantly. The government data is expected to show an increase of 60,000 positions, below the 64,000 reported in November. The unemployment rate is expected to decline slightly to 4.5%, compared to 4.6% the month before.
