NEW YORK (TheStreet) -- Private-sector employment rose by the most in three years in November, according to the latest ADP National Employment Report.
On a seasonally adjusted basis, private businesses added 93,000 jobs in November. The growth in private payrolls came in significantly higher than expected, with economists forecasting a jump of 58,000, according to consensus estimates from Briefing.com.
Employment in the services sector rose for the tenth consecutive month by 79,000 in November. Employment in goods-producing and manufacturing sector rose by 14,000 and 16,000 respectively after declining last month. The construction sector shed 3,000 jobs, its smallest decline since June 2007.
Interestingly, the growth in payrolls was driven by small-businesses. Large businesses, defined as those with 500 or more workers, increased by 2,000 while employment among medium-size businesses, defined as those with between 50 and 499 workers, increased by 37,000. Employment among small-size businesses, defined as those with fewer than 50 workers, increased by 54,000.In another report released on Wednesday, global outplacement firm Challenger Gray & Christmas said downsizing activity rose to an eight-month high, as government and nonprofit organizations shed jobs. Employers announced job cuts totaling 48,711 during the month, according to the report, 28% higher than those planned in the previous month, but still 3.3% lower than year-ago levels. However, John Challenger, CEO of the consulting firm, said that most sectors outside of government have seen declines in job cuts. "The November increase in job cuts is not indicative of a broader trend. Historically, job cuts tend to increase in the final months of the year. This is the period when many companies make budget and payroll decisions for the coming year," said Challenger. The ADP number comes ahead of the government's report of nonfarm payrolls on Friday. The Labor Department is expected to report on Friday that companies added 140,000 jobs in November, according to consensus estimates from Briefing.com. On Thursday, the Labor Department will also release its weekly unemployment claims report. Initial weekly claims is expected to rise by 15,000 to 422,000 in the week ended Nov.27 after unexpectedly dropping to 407,000 in the previous week, its lowest level since July 2008.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV