The job loss is a major reversal from October’s revised gain of 47,000
US job growth fell sharply in November as the private sector cut 32,000 employees, according to payroll firm ADP.
The loss is a major reversal from October’s revised gain of 47,000 and far below Dow Jones’ expectations for a 40,000 increase.
Small businesses with fewer than 50 employees saw the largest number of job cuts, shedding 120,000 workers. Meanwhile, larger firms with over 50 employees added 90,000 positions.
Job losses
Professional and business services saw the biggest decline (-26,000), followed by information (-20,000), manufacturing (-18,000), and financial activities and construction (-9,000 each).
Sectors that posted gains were education and health services (+33,000) and leisure and hospitality (+13,000).
ADP’s numbers came before the federal jobs report, which was delayed due to the government shutdown. It is expected on December 16.
November’s job scenario also arrives just before the Federal Reserve’s meeting on 9–10 this month, where markets expect another quarter-point interest rate cut.
Economists believe that consumers are spending less due to concerns about the current economic situation.
They also say that the data will help Fed officials who are arguing for a deeper rate cut decide how aggressively to reduce borrowing costs at its upcoming meeting.