Read more: Sharp drop seen in November jobless rate - Business - MiamiHerald.comEconomists think the BLS payrolls report may be undercounting hiring by small businesses. This may explain why a key private-sector employment gauge on Wednesday posted surprisingly strong numbers that were somewhat at odds with Friday’s BLS data. The ADP National Employment Report said 206,000 private-sector jobs were created in November. Employers with more than 500 workers accounted for about 6 percent of the hiring, the ADP report said, while employers with fewer than 49 workers accounted for 53 percent of the new jobs.
The National Federation of Independent Business, which surveys the pulse of smaller firms, also said Friday that its members were seeing an uptick in hiring.
“The percent of owners cutting jobs has returned to ‘normal’ levels,” said William Dunkelberg, the group’s chief economist. “And the percent of owners adding workers continued to trend up. Reports of new job creation should pick up a bit in the coming months.”
That could also account for the surprisingly good retail and consumer confidence numbers that we've seen recently.