US job hopes increase following private sector payroll figures

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

US 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 yesterday from ADP Employer Services, which jointly developed the report with Macroeconomic Advisers LLC.

The October figure was originally reported as a gain of 43,000.

The US government's monthly employment report tomorrow is forecast to show another month of job gains.

Also in November, however, the number of planned layoffs by US employers rose to the highest level since March, according to a report by consultants.

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

US stock index futures were sharply higher before the stock market opened, while long-dated US Treasury debt prices were at session lows and the US dollar sharply weaker against major currencies after a week of gains.

Yesterday's government productivity report showed productivity increased at an annual rate of 2.3 per cent rather than the 1.9 per cent pace reported last month.