Private sector adds 122,000 jobs in December, below expectations, ADP says
Published On Jan 8, 2025, 8:24 AM
In December, the private sector in the U.S. added 122,000 jobs according to ADP, which fell short of economists' expectations of 140,000 and was lower than the previous month's addition of 146,000 jobs. The slowdown was attributed to declines in sectors like manufacturing and professional services, while the education and health services sector led the gains. Additionally, wage growth moderated to 4.6%, the slowest since July 2021, indicating a cooling labor market.
Stock Forecasts
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The underperformance in job growth and slowing wage increases could signal a weakening economy, affecting consumer spending and leading to cautious market sentiments. Investors may want to consider sectors that traditionally perform well in such economic climates, such as utilities and consumer staples.
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