U.S. Hiring Picks Up Pace in December But Doesn't Fuel Faster Wage Growth, ADP Reports
04 Januar 2024 - 3:09PM
Dow Jones News
By Joshua Kirby
Hiring among U.S. private-sector employers picked up pace in
December but pay gains slowed, adding to signs of a soft landing
for the economy.
Employment in the nonfarm private sector rose by 164,00 jobs,
accelerating from 101,000 in November, according to data from the
ADP National Employment Report released Thursday. Economists polled
by The Wall Street Journal had expected a shallower uptick to
130,000 new jobs.
The labor market is returning to prepandemic trends, said Nela
Richardson, chief economist at ADP. "[The] market [is] very much
aligned with prepandemic hiring," she said.
Services including, hospitality and education led the gains,
adding 155,000 jobs in total. Goods-producing sectors added fewer
jobs, and manufacturing shed 13,000. By region, the West and
Northeast added the most jobs, with 109,000 and 94,000,
respectively. Some 21,000 jobs were lost in the Midwest,
conversely.
Despite the uptick in jobs, annual wage growth continued to
slow, easing to 5.4% from 5.6% a month earlier. This marks a new
slowest rate since September 2021, and puts an end to any fears of
higher salaries driving a renewed rise in inflation, Richardson
said.
"While wages didn't drive the recent bout of inflation, now that
pay growth has retreated, any risk of a wage-price spiral has all
but disappeared," Richardson said.
Pay data is based on the salaries of almost 10 million
individual employees over a 12-month period. The ADP estimate is
based on aggregated payroll data of more than 25 million U.S.
workers and is independent from U.S. Labor Department official
data.
Write to Joshua Kirby at joshua.kirby@wsj.com;
@joshualeokirby
(END) Dow Jones Newswires
January 04, 2024 08:54 ET (13:54 GMT)
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