U.S. Posts Unexpected Drop in Private Payrolls
Private payrolls declined by 32,000 positions, dramatically missing market expectations of a 5,000-job increase and reversing an upwardly revised 47,000 gain recorded in October, the workforce analytics firm reported.
ADP stated Tuesday that job creation had stalled throughout the latter half of 2025 while wage growth continued its downward trajectory.
November hiring proved especially anemic across manufacturing, professional and business services, information technology, and construction sectors, the institute noted.
"Hiring has been choppy of late as employers weather cautious consumers and an uncertain macroeconomic environment," ADP chief economist Nela Richardson said. "And while November's slowdown was broad-based, it was led by a pullback among small businesses."
Education and health services registered the strongest expansion by adding 33,000 positions, with leisure and hospitality contributing 13,000 new jobs.
Natural resources and mining sectors generated 8,000 openings, while trade, transportation, and utilities added just 1,000 roles.
Conversely, professional and business services hemorrhaged 26,000 positions—the steepest decline—followed by information services shedding 20,000 jobs and manufacturing cutting 18,000 workers.
The employment figures emerge as the Federal Reserve prepares to convene December 9-10 to determine its monetary policy trajectory. Recent months have witnessed deteriorating labor market conditions while inflation pressures have subsided, with price growth predominantly undershooting or aligning with forecasts.
The CME FedWatch tool now indicates investors are pricing in an 89% probability of a 25 basis point rate reduction at the Fed's December gathering. The benchmark policy rate currently sits within the 3.75% to 4% target range.
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