U.S. private-sector employment rose by 190,000 jobs in November from October, slightly above Econoday's consensus estimate of 186,000, prompting Moody's Analytics to warn of a threat of labor market overheating in 2018.
Employment in the goods-producing sector increased by 36,000 jobs, driven by the highest number of gains in the manufacturing industry in more than seven years. The service-providing sector added 155,000 jobs, led by the education and health services sector, which recorded a rise of 54,000.
"The only soft spots are in industries being disrupted by technology, brick-and-mortar retailing being the best example. There is a mounting threat that the job market will overheat next year," said Mark Zandi, chief economist of Moody's Analytics.
Manufacturing job gains totaled 40,000. Construction lost 4,000 jobs during the month, while employment in the natural resources and mining sector remained unchanged. The professional and business services sector added 47,000 jobs. Trade, transportation and utilities, financial activities, and leisure and hospitality sectors also posted job gains during the month. The information sector lost 13,000 jobs and other services sector lost 2,000 jobs.
"Manufacturing added the most jobs the industry has seen all year," said Ahu Yildirmaz, vice president and co-head of the ADP Research Institute. "As the labor market continues to tighten and wages increase it will become increasingly difficult for employers to attract and retain skilled talent."
By company size, medium-sized businesses added the highest number of jobs at 99,000. Small businesses added 50,000 jobs and large businesses added 41,000.
Automatic Data Processing Inc. produces the report in collaboration with Moody's Analytics. The report, based on ADP payroll data representing 411,000 U.S. clients employing nearly 24 million workers, measures the monthly change in total nonfarm private employment on a seasonally adjusted basis.