Two days after payroll company ADP released its National Employment Report showing an increase of 534,000 jobs in US non-farm private sector employment the US Bureau of Labor Statistics came out with its own survey of establishments showing a disappointing rise of 210,000 non-farm hires in November, down from a yearly average of 555,000 new hires per month.
According to ADP’s October report 571,000 jobs were added that month. The ADP report is based on its analysis of its database covering about one-fifth of US private payroll employment using its payroll system, which however does not necessarily have the same composition as the sample used by the US Bureau of Labor Statistics Survey.
Stock markets shrugged off the payroll data, rising slightly at the bell before adjusting downwards.
Meanwhile the Bureau of Labor Statistics household survey data showed that the number of unemployed people fell by 542,000 compared to a fall of 255,000 between September and October, seemingly indicating that people are increasingly finding jobs.
“The underlying momentum of the labor market is still strong, but this month shows more uncertainty than expected,” Nick Bunker, economic director at jobs placement site Indeed told CNBC. “The household survey shows accelerating employment gains, workers returning to the labor force, and low levels of involuntary part-time work. The payroll survey shows a significant deceleration in job growth, particularly in COVID-affected sectors.”
By Feike de Jong
