There are signs a tightening U.S. labor market is boosting wage growth, which has been stuck at historically low levels and which economists have blamed for holding back consumer spending, Moody's Analytics chief economist Mark Zandi said on Wednesday.
"We are seeing pay increases with people switching jobs. For those who are staying at their jobs, they are seeing pay increases as well," Zandi said on a conference call with reporters after release of the ADP National Employment Report for December.
The December ADP report, which Moody's jointly developed with the payroll processor, showed U.S. companies added 257,000 jobs last month, the most in a year. It beat the 192,000 increase forecast among analysts polled by Reuters.
The private jobs data came in advance of the government's December payrolls report on Friday.
Economists polled by Reuters project employers likely added 200,000 workers, down from 211,000 in November. They forecast average hourly earnings likely grew 0.2% last month.