Private sector job creation eased more than expected in December while wages grew at the slowest pace in nearly three-and-a-half years, payment processing firm ADP reported Wednesday.
Companies added a seasonally adjusted 122,000 jobs for the month, down from 146,000 additions in November and less than the Dow Jones consensus forecast for 136,000. It was the smallest increase since August.
On wages, pay grew at a 4.6% rate from a year ago, the slowest pace since July 2021.
“The labor market downshifted to a more modest pace of growth in the final month of 2024, with a slowdown in both hiring and pay gains,” ADP chief economist Nela Richardson said.
Though there are signs hiring is slowing, there have been few indications to indicate that layoffs are increasing.
The Labor Department on Wednesday reported that initial claims for unemployment insurance totaled just 201,000 for the week ending Jan. 4. That was well below the 215,000 estimate and the lowest level since February 2024.
