Private sector employment in the United States unexpectedly declined in November, shedding 32,000 jobs, while year-over-year pay growth continued its downward trend, according to the latest ADP National Employment Report released Wednesday.
The report, produced by the ADP Research Institute in collaboration with the Stanford Digital Economy Lab, highlights a “choppy” hiring environment influenced by cautious consumer behavior and macroeconomic uncertainty.
“While November’s slowdown was broad-based, it was led by a pullback among small businesses,” Nela Richardson, chief economist at ADP, said.
Small Businesses Bear the Brunt
The data revealed a stark contrast based on establishment size. Small businesses (1-49 employees) were hardest hit, eliminating 120,000 positions. In contrast, medium establishments (50-499 employees) added 51,000 jobs, and large establishments (500+ employees) added 39,000.
Industry and Regional Breakdown
Hiring was particularly weak in manufacturing, professional and business services, information, and construction.
Key Industry Changes:
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Professional/Business Services: -26,000
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Information: -20,000
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Manufacturing: -18,000
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Education/Health Services: +33,000
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Leisure/Hospitality: +13,000
Regionally, the Northeast experienced the steepest decline, losing 100,000 jobs. The West and Midwest bucked the trend, adding 67,000 and 45,000 jobs, respectively.
Pay Growth Slows
Along with the drop in employment, pay growth decelerated. Year-over-year pay for “job-stayers” rose 4.4 percent, down from 4.5 percent in October. For those who changed jobs, pay growth was 6.3 percent, down from 6.7 percent the previous month.
The October total number of jobs added was revised upward from 42,000 to 47,000.
