U.S. private sector job growth cooled in December 2024, according to a report released Wednesday by ADP. Hiring fell short of November's pace, and wage growth also moderated.
December saw 122,000 new private sector jobs, a 24,000 decrease compared to the prior month's 146,000. ADP chief economist Nela Richardson attributed the slowdown to a "more modest pace of growth" in both hiring and wage gains.
Health care emerged as a notable exception, adding more jobs than any other sector in the second half of 2024. However, manufacturing continued its decline, shrinking for a third consecutive month.
The service industry performed better, adding 112,000 jobs. Education and health services were strong contributors, adding 57,000 positions. Leisure and hospitality also saw growth, adding 22,000 jobs.
Conversely, the goods-producing sector experienced mixed results. Construction added 27,000 jobs, but manufacturing declined by 11,000.
Geographic differences were also apparent. The Western U.S. added the most jobs (82,000), while the Midwest saw the lowest growth (7,000).
Wage growth also softened. Job switchers saw a 7.1% pay increase, down slightly from 7.2% in November. Year-over-year pay growth for existing employees slowed to 4.6%, the weakest showing since July 2021.
