U.S Job Growth Data Leads To Stock Markets Bouncing Back--Report
Private sector employment in the U.S has increased by 241,000 from November to December, according to a new report. The release of the report coincides with a surge in the U.S stock market that had been falling for the past few days.
According to an employment report prepared by the Roseland, New Jersey-based ADP research Institute, the bulk of the non-farm private jobs of 241, 000 were added by small and medium-sized businesses. Small businesses with an employee count of less than 49 reportedly added 106,000 jobs during the period while medium businesses with an employee count between 50 and 499 added 70,000 new jobs in the U.S.
Large businesses added a total of 66,000 jobs between November and December 2014. Businesses with an employee count between 500 and 999 added 22,000 new jobs and businesses that employ more than 1000 employees have reportedly added 43,000 new jobs.
A bulk of the new job creation is reportedly in the service sector with a whopping 194,000 new jobs in the sector. The goods producing sector has added 46,000 new jobs. Professional business service has taken the top spot by adding 69,000 new jobs while trade, transport and utilities sector came in second with 44,000 jobs.
Job creation in financial activities lagged behind the others by adding only 16,000 new jobs in the U.S. Construction and manufacturing also lagged behind the others by adding only 23,000 26,000 new jobs respectively. Mark Zandi, the chief economist of Moody's analytics, has reportedly said that the current pace of job growth could lead to the economy getting back to full employment by next year.
In another press release by ADP, the research Institute shared the job growth scenario in the different sectors of the franchise industry. According to the ADP National Franchise Report, the highest number of jobs was created by restaurants. Restaurants reportedly added more than 24,000 new jobs.
The total number of jobs created by the franchise sector reportedly stands at over 37,000. The strong job growth report in the U.S. may have contributed to the rise in the stock markets. The S&P 500 index witnessed positive gains in early trade on Jan 7.