Employment in the private sector showed its largest increase since December 2010 this past month according to the payroll processor ADP. The report shows that private sector employment rose by 206,000 jobs in November, which may also have led to a reported increase in consumer confidence over the past month. These numbers are a good indication to investors that the economy is stabilizing and provides more reassurance that we will avoid a “double-dip” recession. Having said that, the job market must show strong, consistent growth that reduces the unemployment rate before it will have a significant influence on the equities markets, something unfortunately we have yet to see.
Note that the unemployment rate is expected to remain at 9% for the month.