Private Sector Hiring and Wage Growth in December
Private sector hiring cooled more than expected in December with 122,000 jobs added, wage growth slowed to 4.6% from a year earlier, and ADP's report indicates a moderation in wage growth supporting the view that pay increases are not driving inflation upward.
Key Points
- 122,000 jobs added in December
- Wage growth at 4.6% from a year earlier, slowest in over three years
- Labor market shows resilience despite hiring slowdown
Pros
- ADP report provides insights into private sector hiring and wage growth trends
- Deceleration in hiring could help address concerns about inflationary pressures in the labor market
Cons
- Slowest annual wage gain since July 2021 may impact consumer spending power