After slipping below 200,000 in October, the pace of private sector job creation got back on track last month.
According to the ADP National Employment Report, employment increased by 217,000 jobs last month, with small businesses leading the way.
The report, produced by ADP in collaboration with Moody's Analytics, shows payrolls for businesses with 49 or fewer employees increased by 81,000 jobs in November, down 10,000 from October. Employment among companies with 50-499 employees rose by 62,000 jobs, large companies -- those with 500 or more employees -- came in double the upwardly revised 37,000 jobs added in October at 74,000. Companies with 500-999 added 57,000 jobs, the largest gain for this segment in the history of the ADP National Employment Report. Companies with over 1,000 employees gained 17,000 jobs.
"Job growth remains strong and steady,” said Mark Zandi, chief economist of Moody's Analytics. “The current pace of job creation is twice that needed to absorb growth in the working age population. The economy is fast approaching full employment and will be there no later than next summer.”
Where the jobs are
Employment in goods-producing companies rose by 13,000 jobs in November, while the construction industry added 16,000 positions. Manufacturing, after two straight months of losing jobs, added 6,000 workers last month.
The service-providing sector continued to be the employment leader, adding 204,000 jobs in November, 30,000 more than in October. Professional/business services hired 59,000 workers for the largest increase since June. Trade/transportation/utilities grew by 30,000, financial activities added 9,000 new jobs, falling short of the average of the last four months which ranged from 11,000 – 13,000 per month.
"The strongest gains in the service sector since June led to greater employment growth in November," said Ahu Yildirmaz, VP and head of the ADP Research Institute. "The increase was driven in large part by a rebound in professional/business service jobs."