US Private Sector Unexpectedly Sheds 32,000 Jobs in November, Small Businesses Hit Hardest
The U.S. private sector unexpectedly cut 32,000 jobs in November, primarily due to small businesses shedding 120,000 positions. Wage gains also slowed, contributing to the overall decline.
Overview
The U.S. private sector experienced an unexpected loss of 32,000 jobs in November, according to the latest ADP report, marking a significant downturn.
Small businesses, specifically those with fewer than 50 employees, were responsible for a substantial 120,000 job cuts during November.
The professional and business services industry led the decline, eliminating 26,000 jobs, while the leisure and hospitality sector saw a gain of 13,000 jobs.
Slowing wage gains contributed to the job losses, with pay increases for job-changers decreasing to 6.3% from 6.7% in the prior month.
The release of the ADP report on November job losses was delayed due to a government shutdown, which is now nearing its conclusion.
Analysis
Center-leaning sources frame this story by emphasizing a "deteriorating employment picture" and "unsteady ground" in the labor market. They highlight job losses, particularly among small businesses, and connect the data to broader economic uncertainty. While acknowledging a "bright spot" and report limitations, the overall narrative underscores a significant slowdown and negative outlook.
Sources (6)
FAQ
The professional and business services industry led the decline, eliminating 26,000 jobs, while small businesses with fewer than 50 employees were responsible for a substantial 120,000 job cuts. The leisure and hospitality sector, however, saw a gain of 13,000 jobs.
The release of the ADP report was delayed due to a government shutdown, which is now nearing its conclusion.
Wage gains slowed in November, with pay increases for job-changers decreasing to 6.3% from 6.7% in the prior month.
In September, unemployment rates increased for adult women (4.2%) and Asians (4.4%). Rates for adult men (4.0%), teenagers (13.2%), Whites (3.8%), Blacks (7.5%), and Hispanics (5.5%) showed little or no change.
Employment in food services and drinking places increased by 37,000 in September, while social assistance employment rose by 14,000, mainly due to growth in individual and family services (+20,000).
History
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