4 December 2022

Private Sector Hiring Slows in November

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The private sector added workers at a slower pace last month, according to an employment survey released Wednesday. Private payrolls in the U.S. increased by 208,000 jobs in November, said a national employment report compiled by payroll processor Automatic Data Processing Inc. (ADP) and forecasting firm Moody’s Analytics.

Economists surveyed by The Wall Street Journal projected ADP to report a stronger November advance of 223,000 new private-sector jobs. The October increase was revised to 233,000 from 230,000. The ADP estimate of 208,000 was mentioned on Twitter a few minutes before the scheduled 8:15 a.m. release time. In a press call, ADP said it had “no knowledge” that the number had been released early.

Although a reading over 200,000 would have been considered strong a year ago, the latest ADP gain is a disappointment and is the lowest number of hires since August. The report is issued ahead of the Labor Department’s employment report scheduled for Friday. Economists think the department will report that November nonfarm payrolls, including government positions, increased by 230,000 new positions, a bit better than the 214,000 jobs created in October. The November unemployment rate is expected to hold at 5.8%.

Economists are unlikely to change their forecasts after seeing the ADP number. Ahu Yildirmaz, an economist at ADP, said small businesses are hiring because they have better access to credit and are seeing demand grow.

Medium-size businesses with payrolls of 50-499 workers increased payrolls by 65,000. Large firms—businesses with 500 or more employees—hired just 42,000 more workers. Service-sector payrolls increased by 176,000 workers in October. Manufacturing added 11,000 jobs. Construction payrolls increased by 17,000.

Click here to access the full article on The Wall Street Journal. 

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