US small businesses lead job cuts as November private payrolls drop unexpectedly
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The news: Private sector employment shed 32,000 jobs in November with small businesses leading the cuts, according to data from payrolls processing firm ADP published Wednesday.
The numbers: ADP found that the payrolls decline marked a sharp step down from the month prior, which saw an upwardly revised gain of 47,000 positions. Economists polled by Reuters had forecast private employment rising by 10,000 jobs.
Establishments with fewer than 50 workers saw a fall of 120,000, including a decline of 74,000 among firms with 20 to 49 employees.
Large businesses, however, with 50 or more workers, reported a net gain of 90,000 employees.
The biggest losses came in professional and business services, which saw a decline of 26,000 roles.
The context: Education, health and leisure and hospitality service sector led gains, but a broad-based decline across industries pushed the total down.
Year-over-year pay for job-stayers rose 4.4%, down from 4.5% growth in October. For workers switching jobs, pay increased 6.3%, slowing from 6.7% growth the month prior.
The ADP report is the last piece of jobs data the Federal Reserve will receive before it meets for its final rate decision of the year next week.
“Hiring has been choppy of late as employers weather cautious consumers and an uncertain macroeconomic environment,” said Dr. Nela Richardson, chief economist, ADP. “And while November's slowdown was broad-based, it was led by a pullback among small businesses.”
