US ADP private employment grew 164k in December, above expectation of 130k. By sector, goods-producing jobs rose 9k while service-providing jobs rose 155k. By establishment size, small companies added 74k jobs, medium companies added 53k, and large companies added 40. Median change in annual pay for jobs-stayers slowed from 5.6% to 5.4%, and for job-changers from 8.3% to 8.0%.
“We’re returning to a labor market that’s very much aligned with pre-pandemic hiring,” said Nela Richardson, chief economist, ADP. “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.”
