Employment in the US private sector jumped by a more-than-expected 206,000 during November, the latest ADP National Employment Report shows.
This is the largest monthly advance seen since December 2010 and almost twice the average monthly gain since May, when employment in the US experienced a sharp deceleration.
Employment in the service-providing sector contributed the bulk of the gain, adding 178,000 jobs in November and increasing from 130,000 in the previous month.
Joel Prakken, chairman of Macroeconomic Advisers, which helps compile the report, says: “An acceleration of employment is consistent with data showing that GDP growth, which slowed sharply around the turn of the year, is gradually recovering.”
Ian Kernohan, economist at Royal London Asset Management, says the figures could herald strong official payroll numbers, which will be published by the US Bureau of Labor Statistics on Friday, and hint at optimism outside of the eurozone.
“Despite the current focus on eurozone woes and talk of another global recession, a lot of US economic data has actually been surprising to the upside over the past couple of months,” he comments.
“While recession in Europe looks to be a done deal, the situation in other parts of the global economy looks more robust.”
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