Private sector gained jobs for fourth straight month to end 2023: report

Private employers added 164,000 jobs in December and wages were up 5.4 percent from last year, according to the new National Employment Report released by the ADP Research Institute on Thursday. “We’re returning to a labor market that’s very much aligned with pre pandemic hiring,” said Nela Richardson, ADP’s chief economist, in a press release.

“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.” December marked the fourth consecutive month of private sector job growth, with a big bump in leisure and hospitality hiring — two industries that were decimated during the pandemic.

High interest rates implemented by the Federal Reserve have put a damper on some sectors, the ADP report notes. While construction hiring remained strong, manufacturers struggled. The ADP employment report sets the stage for Friday’s jobs report. The Bureau of Labor Statistics will release the federal government’s accounting of December job gains as Congress returns from its holiday break and the Republican presidential primary is slated to kick off this month.

President Biden has touted strong jobs numbers as part of his economic platform for his reelection campaign. As the Fed comes in for a rare soft landing, the central bank will also be watching jobs numbers as it weighs when and how to bring down interest rates..