ADP shows industry employment differentiation, the Federal Reserve welcomes stable signals from the labor market

On December 4th, an ADP report showed mixed results in job growth across different industries. Education and healthcare as well as the construction industry led the way, while employment in manufacturing saw its largest decline in over a year. Hiring was also weak in leisure and financial services sectors. These data further prove that despite ongoing price pressures and rising borrowing costs, there is still demand for labor. This is good news for Federal Reserve officials who no longer view the labor market as a source of inflation, but are now focused on maintaining job opportunities.