Unexpected Slowdown in US Job Growth

The United States witnessed a modest increase in private sector jobs by 122,000 in December, as per the ADP National Employment Report released on Wednesday. This figure not only fell short of analysts' expectations but also marked a decrease from November's revised figure of 146,000.

Insights from the Chief Economist

"The labor market experienced a more moderate growth rate in the last month of 2024, with both hiring and pay gains slowing down. Notably, the healthcare sector outperformed others in the latter half of the year, contributing significantly to job creation," stated Nela Richardson, chief economist at ADP.

Breakdown by Company Size and Sector

Large and medium-sized companies added 97,000 and 11,000 jobs, respectively, while small businesses saw an increase of 6,000 jobs. The service sector led the way with a surge of 112,000 jobs, primarily in education and health services. The goods-producing sector also saw a rise, with 10,000 new jobs, mainly in construction.