Topline
Employment in the U.S. private sector plummeted faster than expected in November, according to a report from the payroll processing firm ADP, marking the largest decline in years as small businesses were hit hardest.
A historic decline comes as Wall Street anticipated slight growth through the month.
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Key Facts
Private-sector payrolls decreased by 32,000 in November, ADP reported, well below Wall Street’s estimate for an added 40,000 jobs, according to FactSet.
That matches the largest single-month decline since March 2023.
Companies with 50 or more employees reported a net gain of 90,000 workers through the month, while small businesses—companies with fewer than 50 workers—drove job losses with a decline of 120,000, including a loss of 74,000 workers among businesses with 20 to 49 employees.
Professional and business services headlined job losses with a decline of 26,000 roles, followed by information services (down 20,000), manufacturing (18,000), financial activities (9,000) and construction (9,000).
Pay growth also slowed in November, as year-over-year pay increased 4.4% for workers staying in their jobs, down 0.1% from October.
Crucial Quote
“Hiring has been choppy as of late as employers weather cautious consumers and an uncertain macroeconomic environment,” said Nela Richardson, ADP’s chief economist, in a statement.