Simply put the US labor market continues to signal acceleration heading into the New Year adding justification – were it needed – to Bernanke and company’s decision to wind down the level of bond purchases starting this month. There were some concerns we heard ahead of today’s blowout ADP number that cold weather may have thwarted hiring in December. Perhaps that’s a story for January as record low temperatures threaten to disrupt the economy. However, the 238,000 reading of job creation is the largest of 2013 and was bolstered by upwards revision to prior monthly data. ADP revised higher its November reading to 229,000 from an initially reported 215,000. Construction jobs added 48,000 to the bottom line while manufacturers added 19,000 positions.
The rise in the number of construction jobs eclipses the year ago reading of 37,000 and as the chart below shows is the largest single monthly jump since February 2006. Payrolls overall rose by the most since November 2011 when ADP data showed they reached 276,000. For all of 2013 the private payroll processor shows monthly job creation ran at 180,000 positions.
Chart – Construction ranks surge to strongest in seven years