ADP reports that private sector companies created 122,000 jobs in December, which was below the anticipated amount.

• The number of jobs added by companies in December was 122,000, lower than the 146,000 additions in November and below the Dow Jones consensus forecast of 136,000.
• Since July 2021, the slowest pace of growth in wages pay was recorded at a 4.6% rate from the previous year.

While wages grew at the slowest pace in nearly three-and-a-half years, private sector job creation eased more than expected in December, according to payment processing firm ADP.

The number of jobs added by companies in December was 122,000, which is lower than the November addition of 146,000 and below the Dow Jones consensus forecast of 136,000. This represents the smallest increase since August.

Since July 2021, the slowest pace of growth in wages pay was recorded at a 4.6% rate from the previous year.

Nela Richardson, ADP chief economist, stated that the labor market experienced a slower pace of growth in the last month of 2024, with a decrease in both hiring and pay increases.

The nonfarm payrolls count from the Bureau of Labor Statistics, which is closely watched by economists, is expected to show a gain of 155,000 two days after the ADP report. This would represent a significant slowdown from November's unexpectedly strong 227,000.

The Federal Reserve is closely monitoring job numbers while planning their next moves for monetary policy. Although most Fed officials believe the labor market is stable, they are keeping interest rates less restrictive to avoid hindering job creation.

Although inflation remains above the Fed's 2% target, they have expressed more confidence that it has stabilized. The ADP numbers may support the argument that wages are not driving inflation.

The education and health services sector experienced the most job growth, adding 57,000 positions. Additionally, significant gains were made in construction (27,000), leisure and hospitality (22,000), and financial activities (12,000).

Job losses were reported in several sectors, including manufacturing (-11,000), natural resources and mining (-6,000), and professional and business services (-5,000).

Over 97,000 jobs were obtained from companies with more than 500 employees.