Companies added more workers than anticipated in November, easing concern the job market is stagnating in the third year of the U.S. recovery, according to a private report based on payrolls.
The 206,000 increase was the biggest this year and followed a revised 130,000 gain the prior month, Roseland, New Jersey- based ADP Employer Services said today. The median forecast of economists surveyed by Bloomberg News called for an advance of 130,000.
A pickup in hiring will make it easier to sustain the recent gain in consumer spending, which accounts for about 70 percent of the economy. Overall payrolls rose by 122,000, still not enough to cut the jobless rate from 9 percent, economists in a Bloomberg survey projected ahead of a Labor Department report due in two days.
“Companies are going to ramp up a bit,” Russell Price, senior economist at Ameriprise Financial Inc. in Detroit, said before the report. “We just have to let the economy build on its own momentum. Then we’ll be at a stage where demand creates employment which creates more spending.”
Last month’s initial ADP figures showed a 110,000 gain, while the Labor Department’s data two days later showed an increase of 104,000 in private payrolls for October.
Stock-index futures extended gains after the Federal Reserve and five central banks lowered interest rates on dollar swaps and China cut banks’ reserve requirements. The contract on the Standard & Poor’s 500 Index expiring next month climbed 3 percent to 1,232.6 at 8:33 a.m. in New York.
The projections for November ranged from 95,000 to 200,000, based on the estimates of 44 economists surveyed by Bloomberg.
Goods-producing industries, which include manufacturers and construction companies, had an increase of 28,000 workers, today’s figures showed. Employment in construction rose by 16,000, the most since November 2006, while factories added 7,000 jobs.
Service providers took on 178,000 workers.
Companies employing more than 499 workers added 12,000 jobs. Medium-sized businesses, with 50 to 499 employees, took on 84,000 workers and small companies increased payrolls by 110,000, ADP said.
kalamata olive oil