U.S. Private Sector Job Growth Falls Well Short Of Estimates In November
Private sector job growth in the U.S. fell well short of economist estimates in the month of November, payroll processor ADP revealed in a report released on Wednesday.
ADP said private sector employment increased by 127,000 jobs in November after surging by an unrevised 239,000 jobs in October. Economists had expected employment to jump by another 200,000 jobs.
“Turning points can be hard to capture in the labor market, but our data suggest that Federal Reserve tightening is having an impact on job creation and pay gains,” said ADP chief economist Nela Richardson.
“In addition, companies are no longer in hyper-replacement mode,” she added. “Fewer people are quitting and the post-pandemic recovery is stabilizing.”
ADP said job creation slowed by the most since January 2021, led by construction and other interest rate-sensitive sectors.
The report showed employment in the construction sector edged down by 2,000 jobs, while employment in the manufacturing sector plunged by 100,000 jobs.
Employment in the professional and business services, financial activities and information sectors also decreased compared to the previous month.
Meanwhile, ADP said consumer-facing segments were bright spots, with employment in the leisure and hospitality sector surging by 224,000 jobs.
The report also showed employment at large and small businesses fell by 68,000 jobs and 51,000 jobs, respectively, partly offsetting a 246,000 job surge in employment at mid-sized businesses.
On Friday, the Labor Department is scheduled to release its more closely watched monthly employment report, which includes both public and private sector jobs.
Economists currently expect employment to jump by 200,000 jobs in November after shooting up by 261,000 jobs in October, while the unemployment rate is expected to hold at 3.7 percent.
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