U.S. Jobs Report Eases Fears of Sharp Economic Slowdown

Employment in the private sector rose almost four times faster than expected last month, according to an estimate from ADP, the payroll services firm, soothing fears that the credit crisis is about to cause a sharp economic slowdown.

The jobs figures came as a slew of other data on Wednesday suggested slowing, rather than plunging, economic growth. New orders for manufacturing goods rose in October; productivity growth was the strongest for four years in the third quarter, driving down labour costs; and business activity in the service sector was still growing last month, allbeit at a slower pace.

The U.S. economy added 189,000 jobs last month, compared with 106,000 in October, and much more than the 50,000 jobs that economists had predicted.

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