November employment increase largest in three years
The U.S. economy added 93,000 private-sector jobs in November from the previous month, the largest gain in three years and a sign of a "brightening" employment situation, according to the Automatic Data Processing report Wednesday. The November gain is the tenth straight month of added jobs and roughly double the average gains in that time. However, the improvement will not be enough to lower the unemployment rate, which according to ADP will likely remain above 9% for all of 2011. ADP numbers also fall short of some analysts' predictions for November. TrimTabs Investment Research estimated the economy would add 117,000 jobs in November. "The economy continues to improve," Madeline Schnapp, director of macroeconomic research at TrimTabs, said. "Unfortunately, the gains are driven by seasonal holiday factors, so they are probably temporary." According to ADP, 79,000 of the added jobs in November were service-providing, followed by 16,000 in manufacturing and 14,000 in the goods-producing sector. Construction jobs dropped by 3,000 in November, which was the smallest decline since June 2007. "Furthermore, given modest GDP growth in the second and third quarters, and the usual lag of employment behind GDP, it would not be surprising to see several more months of only moderate gains in employment even as the economic recovery gathers momentum," according to the ADP report. Write to Jon Prior.