Private hiring on rise
WASHINGTON — Private employers probably revved up hiring in November as signs grow that the economy is gaining momentum. Yet, few expect a change in the 9.6 percent unemployment rate.
After a sharp slowdown in the spring and a tepid rebound in the summer and fall, the economy is flashing signs of stronger growth in the final months of the year. That was evident in economic reports out earlier this week.
Factories are producing more. Auto sales are rising. A private report earlier this week showed the strongest private-sector job gains in three years. And applications for initial unemployment benefits hit a two-year low in November.
All that is making some economists more optimistic about today’s report on November employment.
Nigel Gault, chief U.S. economist at IHS Global Insight, predicts that private companies added a net total of 180,000 jobs last month — a bump-up from his earlier forecast of 160,000 new jobs. In October, private companies added a net 159,000 jobs. That marked a spurt of job creation after hiring had all but stalled pretty much all summer.
Two pillars of the economy — jobs and consumer spending — appear on the upswing. “We are getting some hints of the virtuous cycle we want to see where employment and consumer spending move up together,” Gault said.
The number for job growth is likely to be a little lower after subtracting declines in government payrolls. Gault and other economists on the optimistic end expect the overall economy added 170,000 net jobs last month. Still, the consensus forecast is for an overall gain of 145,000.
