U.S. Private Sector Employment Rises Less Than Expected In November

Private sector employment in the U.S. increased by less than expected in the month of November, payroll processor ADP revealed in a report released on Wednesday.

ADP said private sector employment rose by 103,000 jobs in November after climbing by a downwardly revised 106,000 jobs in October.

Economists had expected private sector employment to advance by 130,000 jobs compared to the addition of 113,000 jobs originally reported for the previous month.

“Restaurants and hotels were the biggest job creators during the post-pandemic recovery,” said ADP chief economist Nela Richardson. “But that boost is behind us.”

She added, “The return to trend in leisure and hospitality suggests the economy as a whole will see more moderate hiring and wage growth in 2024.”

Employment in the service-providing sector rose by 117,000 jobs, with a dip in employment in the leisure and hospitality sector limiting the upside.

Meanwhile, the report said employment in the goods-producing sector fell by 14,000 jobs, reflecting modest decreases in employment in the manufacturing and construction industries.

ADP also said job-stayers saw a 5.6 percent pay increase in November, the slowest pace of growth since September 2021.

Pay growth for job-changers also slowed to 8.3 percent, marking the smallest year-over-year increase since June 2021.

On Friday, the Labor Department is scheduled to release its more closely watched report on employment in the month of November.

Economists currently expect employment to increase by 185,000 jobs in November after rising by 150,000 jobs in October, while the unemployment rate is expected to hold at 3.9 percent.

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