The Urethane Blog

Job Market Update

Zandi Warns “Job Market Feels Like It Might Overheat” As Manufacturing Jobs Grow At Fastest Pace On Record

Following October’s better-than-expected surge in ADP employment data (as goods-producing jobs soared), November was expected to see some slowdown, and it did, printing right on expectations at +190k (close to NFP’s 195k exp).

“The labor market continues to grow at a solid pace,” said Ahu Yildirmaz, vice president and co-head of the ADP Research Institute.


“Notably, manufacturing added the most jobs the industry has seen all year. As the labor market continues to tighten and wages increase it will become increasingly difficult for employers to attract and retain skilled talent.”

Mark Zandi, chief economist of Moody’s Analytics, said,


“The job market is red hot, with broad-based job gains across industries and company sizes. The only soft spots are in industries being disrupted by technology, brick-and-mortar retailing being the best example. There is a mounting threat that the job market will overheat next year.”   

Of note perhaps is Nov 2017’s ADP print is 16% lower than Nov 2016’s

The breakdown shows drops only in Information and Construction industries.

Goods producing job growth slowed as services picked up…

But Manufacturing jobs added 40k in November – the most on record…


Finally, we note that ADP’s Mark Zandi warned CNBC that “the job market feels like it might overheat.”

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     ADP National Employment Report: Private Sector Employment Increased by 190,000 Jobs in November<br />