Private Sector Well Ahead of Expectations in November

      Today's ADP payroll report showed that the private sector blew the lid off expectations in November creating 206,000 jobs. This number would normally be consistent with a cut in the unemployment rate, however Friday's nonfarm payroll report is expected to be somewhat less than this as it also consists of the public sector.

      http://www.cnbc.com/id/45489425

      There were some other positive developments that we will look at in my next posts-better housing numbers again with that major-earthshaking move by the central banks today. I have been of the opinion in the last few months that the real problem is Europe, that the U.S. is recovering, may even be expanding but until Europe figures something out there is always the danger that they could drag the world down with them. Today's monetary actions are reason to hope on this front too.

     As far as the job gains, the service sector was a big driver: 

    "ADP and Macroeconomic Advisors reported that service providers added 178,000 positions. The goods-producing sector saw a 28,000-job rise, while manufacturing employment increased by 7,000 and construction added 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," Carlos Rodriguez, President and CEO of ADP, said in a statement. " 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."

     "The report also said the estimated gain in employment from September to October was revised up to 130,000 from the initially reported 110,000."

     While the public sector is believed to still be shedding jobs, it is believed to be doing so at a slower rate at least at the state level. At present it is believed that most job losses or now at the federal rather than state level.

     The expected nonfarm payroll numbers are expected to be 122,000. Let's hope for an unexpected beat here as well.