Private payrolls declined 123,000 during the previous month, which marked the first decrease since April, ADP said on Wednesday. Market consensus was calling for an advance of 88,000. November’s data was downwardly revised to an increase of 304,000 jobs.
Looking at the components of the report, most of job declines were reported in large companies that employ 500 or more people with 147,000 jobs lost. Small companies that employ up to 50 people were in the second spot with 13,000 jobs lost. Midsized companies that employ up to 500 people saw an increase of 37,000 jobs.
The majority of payrolls lost were in the service-providing sector, which saw a decrease of 105,000 jobs in December. The goods-producing sector lost 18,000 payrolls.
The December decline shows the negative impact from the second coronavirus wave that hit the U.S. at the end of the year, said CIBC World Markets economist Katherine Judge.
“That was much worse than the … gain expected by the consensus, and leaves the level of employment 7.6% below February’s level. This print leans towards something worse than our below consensus -20K call for the total non-farm payrolls print on Friday,” Judge said.
Before the data release, gold was down more than 1% on the day on some profit-taking after climbing above $1,960 an ounce early Wednesday.
“Gold prices are lower … on some normal profit-taking from the shorter-term futures traders and some chart consolidation after gold hit a two-month high overnight. A surge in Bitcoin prices to another record high overnight may also be stealing some of the precious metals markets’ thunder at mid-week,” Kitco’s senior analyst Jim Wyckoff said.
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.