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ADP Says U.S. Private Payrolls Fell by 32,000 in November as Small Businesses Cut Jobs

ADP's weak November reading is the Fed's final labor signal before next week's meeting due to delayed government data.

Overview

  • Small firms with fewer than 50 employees shed about 120,000 jobs, the steepest monthly drop since early 2023, while companies with 50 or more workers added roughly 90,000.
  • Industry losses were widespread, led by professional and business services, information, manufacturing, construction and financial activities, as education and health services posted gains.
  • Pay growth cooled, with wages up 4.4% year over year for job-stayers and 6.3% for job-changers, both down from October.
  • The official BLS employment report is postponed to Dec. 16 after the shutdown, leaving ADP's report as the most current snapshot before the Dec. 9–10 Fed meeting.
  • Futures markets leaned toward a quarter-point rate cut next week, though economists note ADP can diverge from BLS figures and initial unemployment claims remain relatively steady.