ADP: Manufacturing Employment Increases by 7,000 in November

By November 30, 2011Economy

Manufacturing employment rose by 7,000 in November, its first increase since June, according to Automated Data Processing (ADP) data released this morning. Total nonfarm payrolls increased by 206,000. This was the largest jump of the year, followed closely by the increases in February and March of 205,000 and 203,000, respectively.

November’s gains came almost entirely from the service sector, which grew by 178,000 net new jobs.

In addition, small and medium-sized payrolls (e.g., those with less than 500 employees) accounted for the bulk of the net new jobs, continuing a familiar trend. This was true for both the goods-producing as well as the service-providing sectors. Of the 206,000 net new jobs created in November, 110,000 stemmed from small establishments with less than 50 employees, and 84,000 flowed from medium-sized entities with 50 to 499 employees.  

These numbers suggest that employment growth has picked up its pace from recent weaknesses. For manufacturers, these results mirror regional sentiment surveys which have found an increased ability to start hiring again. A similar finding will probably be found in Friday’s employment report from the Bureau of Labor Statistics; although, the current consensus forecast for nonfarm payrolls from BLS is closer to a net increase of 120,000 (rather than ADP’s larger figure).

Chad Moutray is chief economist, National Association of Manufacturers.

Chad Moutray

Chad Moutray

Chad Moutray is chief economist for the National Association of Manufacturers (NAM), where he serves as the NAM’s economic forecaster and spokesperson on economic issues. He frequently comments on current economic conditions for manufacturers through professional presentations and media interviews. He has appeared on Bloomberg, CNBC, C-SPAN, Fox Business and Fox News, among other news outlets.
Chad Moutray

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