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Inside The ADP Jobs Report – December 2021
Bottom Line: November proved to be an all-around good month of job growth. Sure, seasonality probably played a role, but there was solid job growth across businesses of all sizes, sectors and industries. We’ll take it. According to the ADP Report, reflecting the growth in private sector jobs in November, there were 534,000 private sector jobs added. That included...
- Small businesses: +115,000
- Midsized: +142,000
- Large: +277,000
If you’re looking for a nit to pick in this report, this is where you’d find it. We’ve seen this dynamic of large companies widely adding more jobs than their smaller counterparts exacerbate throughout the year as we’ve had more job openings than people searching for work. The resulting wage inflation is far more easily absorbed by large companies as compared to their smaller counterparts. Add in benefits, which commonly larger companies are more readily able to provide, and it’s creating a significant disruption to traditional job creation. In a typical jobs recovery, small companies hire at a greater rate than large companies, as small companies are commonly forced to shed the most employees during difficult economic times. The last month small companies outhired larger companies was in May.
These were the top industries for hiring in November:
- #1: Leisure and Hospitality
- #2: Professional & Business
- #3: Trade, Transportation & Utilities
This is the sixth consecutive month leisure and hospitality job gains have been at the top. It’s clear this continues to be a COVID recovery story. That’s only likely to continue, especially in our state, given that Visit Florida recently put out a report showing record vacation rental bookings for December, along with record air travel already booked for Florida this month. The next best story during the month was continued strong employment within the manufacturing and construction industries. That’s good news as it’s a leading economic indicator – but also because progress in hiring in those industries can help mitigate supply chain issues and improve the speed at which projects are completed. Tomorrow we’ll get the full jobs picture with government jobs added in.