Private sector wage growth in the United States slowed sharply in December, according to the ADP National Employment Report released on Wednesday.
Private payrolls rose by 122,000 jobs last month after an unrevised gain of 146,000 in November. Economists polled by Reuters had expected private payrolls to rise by 140,000.
The ADP report, developed in conjunction with the Stanford Digital Economy Lab, comes ahead of the Department of Labor’s Bureau of Labor Statistics’ more comprehensive and highly anticipated December jobs report, due out on Friday.
As is well known, there is no direct correlation between the ADP report and the BLS jobs report. ADP’s early estimates have often underestimated private payroll growth this year.
The slowdown in job growth is expected in December after a November pick-up driven by reduced disruptions from hurricanes and strikes by factory workers at Boeing and another aerospace firm.
NFP data is expected to increase by 160,000 jobs after jumping 227,000 in November. The unemployment rate is forecast to remain unchanged at 4.2%.
