Unexpected decline: U.S. private-sector jobs decrease by 32,000 in the last month

In November, private-sector employers in the United States reduced their workforce by 32,000 jobs, according to payroll processor ADP. The decline was unexpected, as analysts had forecasted an increase of over 40,000 positions.

"Recent hiring trends have been uneven, as businesses navigate cautious consumer demand and broader economic uncertainty," said ADP's chief economist, Nela Richardson.

The reduction was concentrated among small businesses, those with fewer than 50 employees, which cut 120,000 jobs. Matthew Martin, senior economist at Oxford Economics, noted, "Small firms are bearing the brunt of policy uncertainty, rising input costs, and higher borrowing rates."

The professional and business services sector led the job losses, with 26,000 positions eliminated. In contrast, the leisure and hospitality industry added 13,000 jobs in preparation for the holiday season.

Although ADP's report is not considered a definitive predictor of overall employment trends, it remains a closely monitored indicator of the U.S. economy, especially following disruptions from the recent federal government shutdown.

Earlier, employers had added 119,000 jobs in September, signaling a rebound after a period of slower hiring. Economists suggest that the November job cuts may increase the likelihood of a Federal Reserve interest rate reduction during the December 910 policy meeting. "While opinions among Fed officials are mixed, we continue to expect a 25-basis-point rate cut, as the ADP report highlights ongoing labor market softness," said economist Oren Klachkin of Nationwide Financial Markets.

Author: Aiden Foster