The private sector created an eye-popping 297,000 jobs from November to December, according a report from ADP that was the highest number the payroll firm has ever reported.
In its monthly report compiled with Macroeconomic Advisors, ADP said the service sector accounted for the bulk of the creation, with 270,000 jobs while goods producers supplied the remaining 27,000
ADP itself noted "This month’s ADP National Employment Report suggests nonfarm private employment grew very strongly in December, at a pace well above what is usually associated with a declining
Some more good news about job creation:
The optimistic report came shortly after news that planned layoffs in the US declined in December to the lowest monthly level of 2010, while expected job cuts for the full year came in at the lowest mark since 1997, outplacement firm Challenger, Gray and Christmas reported Wednesday.
Companies reported 32,004 planned layoffs last month, down 34 percent from November and 29 percent from December 2009.
That was the lowest number of planned cuts since June 2000.
Friday the BLS will issue its December report on unemployment. One difference between the BLS report and ADP is ADP is only for private firms. As a result, expected job losses in State and Local Governments are not captured in the ADP report.
To be very clear here: unemployment is still way too high. Moreover, it will take YEARS ro replace the jobs lossed in the Great Recession. If I were king for a day I would initiate a large jobs program to put as many people back to work as I could. Moreover,as I have written many times here I have significant concerns about how globalization may have broken the traditional relationship between GDP growth and job creation that is expressed in Okun's Law. Additionaly, some will argue that the potential for a double dip in housing and continuing revenue short falls in the States will hamper job creation.
Nevertheless the ADP report, the evidence about planned layoffs, and the recent decline in continuing unemployment claims weekly claims to below 400K suggest an improving job market.