- Ahu Yildirmaz, head of ADP Research Institute
US private companies created more jobs than expected in December, adding to signs the job market kept momentum at the end of the year, and bringing annual hiring to 2.5 million for 2014, according to payroll processor ADP. Employers added 241,000 workers, following the 227,000 increase in employment in previous month, beating economists' expectations for a 227,000 rise. December's private job creation appeared to be broad based despite concerns about downsizing at oil-related companies, which have faced a dramatic decline in crude prices to the lowest level in more than five years. The ADP data comes ahead of the Labor Department's non-farm payrolls report on Friday, which includes both public and private sector employment. Economists predict total US employment have risen by 240,000 jobs in December, down from 321,000 in the preceding month, while the jobless rate is expected to drop to 5.7% from 5.8%, which would be the lowest level since June 2008.
Separately, US trade gap narrowed in November to the lowest level in almost a year, as falling crude prices and weaker demand for foreign oil curbed the import bill, which augurs well for the fourth quarter growth data. The US trade deficit shrank 7.7%, the biggest monthly contraction in a year, hitting $39 billion in November, the lowest level in 11 months.
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