The US private sector lost 32,000 jobs in November, according to the ADP report. This marks another sign of a slowdown in the labor market. The data shows job creation has been nearly flat throughout the second half of the year, although October saw a small increase.
Small businesses continue to be the hardest hit, with ADP saying that economic uncertainty and cautious consumers are dampening their hiring capacity. Manufacturing, construction, and professional services sectors saw job losses, while employment increased in education and health services.
The focus now turns to the official BLS jobs report on December 16. The Chicago Fed estimated the November unemployment rate at 4.44%, in line with September, reflecting a flat and non-expanding labor market.
The Fed’s latest Beige Book shows labor demand weakening, with more hiring freezes and concerns that automation and AI will replace entry-level jobs.
At the same time, employee sentiment is deteriorating with only 69% of consumers expecting the unemployment rate to increase in the next 12 months, reflecting uncertainty about job market trends.
