Private-sector employment increased by 206,000 from October to November on a seasonally adjusted basis, according to the latest ADP National Employment Report released today.  The ADP National Employment Report, created by Automatic Data Processing, Inc. (ADP), in partnership with Macroeconomic Advisers, LLC, is derived from actual payroll data and measures the change in total nonfarm private employment each month.  The estimated gain in employment from September to October was revised up to 130,000 from the initially reported 110,000.

U.S. Nonfarm Private Employment Highlights – November, 2011 Report:

• Total employment:

+206,000

• Small businesses:*

+110,000

• Medium businesses:**

+84,000

• Large businesses:***

+12,000

• Goods-producing sector:

+28,000

• Service-providing sector:

+178,000

Addendum:

• Manufacturing industry: :

+7,000

* Small businesses represent payrolls with 1-49 employees
** Medium businesses represent payrolls with 50-499 employees
*** Large businesses represent payrolls with more than 499 employees

According to today’s ADP National Employment Report, employment in the nonfarm private business sector rose 206,000 from October to November on a seasonally adjusted basis. Employment in the private, service-providing sector increased 178,000 in November, after rising 130,000 in October. Employment in the private, goods-producing sector rose 28,000 in November. Manufacturing employment increased 7,000, offsetting the previous month’s decline, while construction employment grew 16,000.

"This month’s jobs figures show positive growth in all major sectors of the economy and are in line with the recent drop in the national unemployment rate and weekly jobless claims,” said Carlos Rodriguez, President and CEO of ADP. “Despite fiscal uncertainties here and abroad, owners of small- and medium-sized businesses found ways to grow and hire in November. As in previous months, service providers led the way in job creation."

According to Joel Prakken, Chairman of Macroeconomic Advisers, LLC, "November’s advance was the largest monthly gain since last December and nearly twice the average monthly gain since May when employment decelerated sharply. Today’s report, notably above the consensus forecast, suggests that employment, which decelerated during the spring, accelerated in November. A firming of employment was evident in the major sectors of the economy tracked in The ADP National Employment Report, and across payrolls of most sizes."

Prakken continued: “November’s increase in employment normally would be associated with a decline in the unemployment rate. An acceleration of employment is consistent with data showing that GDP growth, which slowed sharply around the turn of the year, is gradually recovering.”

“Employment on medium payrolls—those with 50 to 499 workers—rose 84,000 in November. Employment on large payrolls—those with 500 or more workers—increased 12,000 during that same period,” Prakken noted.

The matched sample used to develop the ADP National Employment Report was derived from ADP data, which, during 2010, averaged about 337,000 U.S. business clients and represented over 21 million U.S. employees. This approximately represents the size of the matched sample used this month.

Small Business Highlights – November Report:
Due to the important contribution small businesses make to economic growth, employment data that is specific to businesses with fewer than 50 employees is reported in the ADP Small Business Report each month.  The ADP Small Business Report is a subset of the ADP National Employment Report.

• Total nonfarm private small business employment: 110,000 jobs created
  • Goods-producing sector: 15,000 small business jobs created
  • Service-providing sector: 95,000 small business jobs created

Prakken added: "Employment on small payrolls—those with up to 49 workers—rose 110,000 in November, up from the 67,000 jobs created among small businesses last month."