US private sector adds fewer-than-expected jobs in December

The US private sector added fewer-than-expected jobs in December, while wage growth slowed to its weakest pace in nearly three and a half years, according to a report issued by Automatic Data Processing (ADP) today, Jan. 8.

The US added 122,000 jobs in December, below the 136,000 estimate, and down from 146,000 in November.

Wages grew by 4.6% annually in December, the slowest rate since July 2021.

New jobs were led by positions in education, health services, and social assistance, which added 57,000 new vacancies, followed by construction and utilities (27,000), leisure and hospitality (22,000), and financial activities (12,000).

Despite the slowdown, only a few sectors saw job losses: manufacturing (-11,000), natural resources & mining (-6,000), and professional & business services (-5,000).

Investors are awaiting Friday’s US jobs report, with forecasts suggesting the addition of 155,000 new jobs in December, down from November’s 227,000 gain.

Federal Reserve officials are closely watching job data to assess the US labor market’s health and guide future monetary policy.