US private payrolls rise 164,000 in December, much more than estimates

By Ovunc Kutlu

ISTANBUL (AA) – US private payrolls rose by 164,000 in December, much more than market estimates, according to a report released Thursday by a research institute.

The market expectation for the figure was to show an increase of 115,000 jobs.

The figure for November, meanwhile, was revised down from a gain of 103,000 to an increase of 101,000.

"Job gains rose for the fourth straight month, led by a healthy bump in leisure and hospitality hiring," the ADP Research Institute in collaboration with Stanford Digital Economy Lab said.

"Construction held strong in the face of high interest rates, but manufacturing continued to struggle, notching another month of losses."

Nela Richardson, the ADP chief economist, said American economy is returning to a labor market that is "very much aligned with pre-pandemic hiring."

"While wages didn't drive the recent bout of inflation, now that pay growth has retreated, any risk of a wage-price spiral has all but disappeared," he added.

Among businesses, small and mid-sized enterprises added 74,000 and 53,000 jobs, respectively, while large businesses experienced a gain of approximately 40,000.

Leisure and hospitality sector posted the highest gain, adding 59,000 jobs, followed by education and health services with an increase of 42,000.