US ADP private employment fell –32k in November, a sharp downside surprise versus expectations for 19k gain and marking one of the weakest readings of the year. Hiring declined in both major sectors, with goods-producing industries shedding -19k jobs and services losing -13k, highlighting broad cooling in labor demand.
The breakdown by firm size underscored the strain on smaller companies. Small businesses cut -120k jobs, overwhelmingly driving the headline decline, while medium-sized firms added 51k and large employers added 39k.
Wage growth also eased: pay for job-stayers slowed to 4.4% yoy from 4.5%, while job-changers saw pay growth fall to 6.3% yoy from 6.7%, continuing the trend of decelerating compensation pressures.
ADP’s Dr. Nela Richardson said the hiring backdrop has become increasingly uneven, citing “cautious consumers and an uncertain macroeconomic environment.” She emphasized that while the slowdown was widespread, the contraction was driven primarily by small businesses—often the most sensitive to shifts in demand and credit conditions.
