American businesses increased hiring and boosted the number of employed people in November, the largest increase in nearly a year, the Associated Press reported.
The private business sector added a net 206,000 jobs this month, a huge jump from October’s 130,000 jobs, according to payroll firm ADP.
"The increase in November was the largest monthly gain since last December and nearly twice the average monthly gain since May when employment decelerated sharply," said ADP, the AP reported.
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ADP’s numbers beat economists’ expectations of 125,000 new positions over the month, the Financial Times reported. Wednesday’s report comes before non-firm payrolls data, which will be released Friday, the FT reported. Economists expect a total employment rise by 122,000.
According to Reuters, economists usually refer to the ADP report to fine-tune their expectations for payroll numbers, although it is not always accurate. Still the report helped to boost American stocks.
"So far in the current U.S. economic expansion, the only period of relatively healthy job creation lasted for a few months from late last year to this spring," Ryan Wang, U.S. economist at HSBC Securities USA said to Reuters. "Today's job gain of 206,000 in November raises the possibility that we may be on the cusp of a similar period of job creation."
Most of the new hiring was spurred by employers with less than 50 workers, which added 110,000 jobs, the FT reported. Companies with 50 to 499 employees had 84,000 new hires and big companies with more than 500 employees added 12,000 jobs, the FT reported.
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