U.S. Private Sector Employment Growth in November Falls Short of Expectations - ADP

According to the report released by ADP, the increase in private sector employment in November fell below expectations, reflecting a slowdown in the labor market. Companies created 146,000 jobs, which is below the downwardly revised figure of 184,000 from October and below economists' forecast of 163,000. Education and healthcare led job creation, providing 50,000 new jobs for the month. This was followed by construction with 30,000 new jobs, trade, transportation, and utilities with 28,000 jobs, and other services with 20,000 jobs. Meanwhile, the manufacturing sector lost 26,000 jobs. Businesses with fewer than 50 employees reported a decline of 17,000 positions. Wage growth accelerated to 4.8%, marking an increase for the first time in 27 months since October. ADP’s chief economist Nela Richardson stated, "While the overall growth for the month is healthy, sector performance was mixed. Manufacturing saw the weakest growth we have seen since spring. Financial services, as well as the leisure and hospitality sectors, also remained weak." The official non-farm payroll data in the U.S. will be released on Friday, with employment expected to show an increase of 214,000.