US private sector hiring undershoots expectations: ADP [Video]

The US private sector added fewer jobs than anticipated in December, payroll firm ADP said Wednesday, with hiring and wage increases both cooling.

Private sector employment rose by 122,000 jobs last month, said ADP, missing a consensus forecast of 131,000 according to Briefing.com.

“The labor market downshifted to a more modest pace of growth in the final month of 2024, with a slowdown in both hiring and pay gains,” said ADP chief economist Nela Richardson.

She added that health care added more jobs than other sectors in the second half of the year.

The figure for December was also a slowdown from November’s employment gain of 146,000.

In particular, hiring in manufacturing contracted for a third consecutive month, the report said.

Most job increases were in the service-providing industries, with education and health services adding 57,000 roles.

The bulk of job gains were also driven by companies employing 500 people …