Payroll processing company ADP released a report on Wednesday (30th) showing that private hiring slowed sharply in November, suggesting that the historically tight labor market may be losing some momentum.
Private businesses added just 127,000 jobs this month, down sharply from the 239,000 reported in October and well below theDow Jones> an estimated 190,000. It was also the lowest number since January.
The relatively weak data comes amid the Fed’s efforts to ease the employment situation; there are still nearly 2 job openings for every worker seeking employment. The Fed has raised the benchmark borrowing rate six times this year, but the unemployment rate is still only 3.7%, close to the lowest level since 1969.
“The labor market is having a hard time capturing inflection points, but the data show that the Fed’s tightening policies are having an impact on job creation and wage growth,” said Nela Richardson, chief economist at ADP. . Fewer people are quitting, and the post-pandemic recovery is stabilizing.”
Two days following the ADP report, the Labor Department is to release the more closely watched nonfarm payrolls. accept”Dow JonesEconomists surveyed by the survey expect an increase of 200,000 following a rise of 261,000 in October.
The largest increase this year in the ADP report was leisure and hospitality, which added 224,000 people.
However, this was offset by a decline of 100,000 in manufacturing, 77,000 in professional and business services, 34,000 in financial activities and 25,000 in information services. Goods producers overall lost 86,000 jobs, while services added a net 213,000 jobs.
Even with shaky employment numbers, salaries continue to climb.
Compensation rose 7.6 percent from a year earlier, ADP said, but was slightly lower than the 7.7 percent increase reported in October.
From a size perspective, all job creation came from businesses with 50-499 employees, an increase of 246,000 jobs. Small firms lost $51,000, while large firms lost $68,000.
