Payrolls at U.S. businesses shrank by 32,000 jobs in November, according to payroll processor ADP, highlighting concerns about the health of the labor market.
This was the largest monthly job loss since early 2023, according to ADP data.
“Hiring has been choppy of late as employers weather cautious consumers and an uncertain macroeconomic environment. And while November’s slowdown was broad-based, it was led by a pullback among small businesses,” said Nela Richardson, chief economist at ADP.
Small businesses with fewer than 20 workers shed 46,000 positions. Businesses with between 20 and 49 workers saw an even larger contraction of 74,000. Larger businesses added 90,000 workers.
Construction lost 9,000 jobs. Manufacturing contracted by 18,000. Natural resources and mining added 8,000.
In the services sector, leisure and hospitality added 13,000 and education and health services added 33,000. Trade, transportation, and utilities added 1,000.
Information, financial services, ahd professional and business services lost jobs, according to ADP.
The negative number for November adds pressure to the Federal Reserve to cut interest rates at its meeting next week.
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