WRAPUP 1-U.S. private sector payroll growth highest in 3 years

* US private sector adds 93,000 jobs in November-ADP

* Planned November U.S. layoffs up at 48,711-Challenger

* US productivity increased at 2.3 pct annual rate

By Caroline Valetkevitch

NEW YORK, Dec 1 (BestGrowthStock) – U.S. private sector payrolls
saw their biggest rise in three years in November, lifting
optimism about the job market ahead of Friday’s key government
employment report.

Adding to the view that the U.S. economic recovery was
picking up steam, non-farm productivity grew faster than
previously estimated in the third quarter.

U.S. private employers added a stronger-than-forecast
93,000 jobs in November, the biggest rise since November 2007,
after an upwardly revised gain of 82,000 the month before,
according to data Wednesday by ADP Employer Services, which
jointly developed the report with Macroeconomic Advisers LLC.

The October figure was originally reported as a gain of
43,000. For details, see [ID:nEAP102100]

“It is just another sign of re-acceleration in the labor
market. Some of the details suggest that there is a 60 percent
chance that the government’s payroll number could beat
consensus,” said John Canally, Investment Strategist at LPL
Financial in Boston.

The U.S. government’s monthly employment report on Friday
is forecast to show another month of job gains.

Also in November, however, the number of planned layoffs by
U.S. employers rose to the highest level since March, according
to a report by consultants Challenger, Gray & Christmas, Inc.

Employers announced 48,711 planned job cuts last month, up
28 percent from 37,986 in October, with the government and
non-profit sector leading the rise, the report showed.

U.S. stock index futures (SPc1: ) were sharply higher before
the stock market open, while long-dated U.S. Treasury debt
prices were at session lows (US10YT=RR: ) and the U.S. dollar
sharply weaker against major currencies after a week of gains.
(JPY=: ) (EUR=: )

Wednesday’s government productivity report showed
productivity increased at an annual rate of 2.3 percent rather
than the 1.9 percent pace reported last month, as employers
squeezed more output from workers and kept costs contained.

Productivity contracted 1.8 percent in the second quarter.

For graphics click on:

U.S. private employment:
(Additional reporting by Lucia Mutikani, Leah Schnurr and
Richard Leong)

WRAPUP 1-U.S. private sector payroll growth highest in 3 years