Private-sector employers added 257,000 jobs in December

Private-sector employers ramped up hiring in December to the highest level in a year, propelled by gains in business services, retailers and construction, according to a new survey. 

The ADP national employment report said Wednesday that businesses added 257,000 jobs in December, the most in a year.

{mosads}Construction companies added 24,000 jobs, retailers and transportation added 38,000 and business and professional services tacked on 66,000.  

December typically posts some of the best numbers each year because retailers retain their holiday workforce through the month.

But Mark Zandi, chief economist of Moody’s Analytics, said strong jobs growth is showing no signs of slowing into 2016.

“If this pace of job growth is sustained, which seems likely, the economy will be back to full employment by mid-year,” Zandi said.

“This is a significant achievement, given that the last time the economy was at full employment was nearly a decade ago,” he said.

The only industry shedding jobs is energy, which has been hit hard by falling oil prices. 

Slower growth in manufacturing, which has been hampered by slow global growth and a stronger dollar making U.S. goods more expensive abroad, combined with the losses in energy led to smaller monthly gains last year compared with 2014.

On Friday, the government will release jobs data for December with the expectation that employers added about 215,000 jobs while the unemployment rate held steady at 5 percent.

Manufacturers added only 2,000 jobs last month, ADP said. 

A separate report from the Institute for Supply Management on Monday showed that the sector contracted for the second straight month.

“The sector has struggled with sluggish growth abroad and lower commodity prices over much of the past year, dampening overall manufacturing activity,” said Chad Moutray, chief economist for the National Association of Manufacturers. 

The ADP report showed that payrolls for smaller businesses — those with 49 or fewer employees — increased by 95,000 last month.

Employment at large companies — those with 500 or more employees — rose  97,000, an increase from the 80,000 jobs added in November.