Payroll processor ADP released a report on Thursday showing private sector employment in the U.S. jumped by much more than expected in the month of December.
ADP said private sector employment shot up by 235,000 jobs in December after surging by an upwardly revised 182,000 jobs in November.
Economists had expected employment to jump by about 150,000 jobs compared to the addition of 127,000 jobs originally reported for the previous month.
The report noted the job resurgence in the last two months of 2022 was led by consumer-facing service industries.
Employment in the service-providing sector spiked by 213,000 jobs in December, led by a jump of 123,000 jobs in the leisure/hospitality industry.
ADP also said employment at small and medium businesses surged by 195,000 jobs and 191,000 jobs, respectively, while large businesses cut 151,000 jobs.
“The labor market is strong but fragmented, with hiring varying sharply by industry and establishment size,” said ADP chief economist Nela Richardson.
She added, “Business segments that hired aggressively in the first half of 2022 have slowed hiring and in some cases cut jobs in the last month of the year.”
On Friday, the Labor Department is scheduled to release its more closely watched employment report for the month of December.
Economists currently expect employment to jump by 200,000 jobs in December after surging by 263,000 jobs in November, while the unemployment rate is expected to hold at 3.7 percent.