Payroll processing firm ADP reported on Wednesday that new private sector jobs slowed further in November, with wage growth the smallest in more than two years.
The company added just 103,000 employees this month, slightly below the downward revised 106,000 in October and below Dow Jones' forecast of 128,000.
With a modest increase in employment, annual wages increased by 56%, which ADP said was the smallest increase since September 2021. Wages for job changers increased by 83%, making the premium for changing the guard the lowest since ADP began tracking data three years ago.
The leisure and hospitality sector has led job creation for most of the time since the pandemic hit in early 2020, with the leisure and hospitality sector losing 7,000 jobs this month. **Transport and utilities added 55,000 jobs, while education and health services added 44,000 jobs and other services added 15,000 jobs.
Service-related sectors provided all of the job growth for the month, as net losses for goods producers were 14,000 as manufacturing fell by 15,000, despite a settlement over the United Auto Workers strike and a net loss of 4,000 in construction. Recent layoffs in Silicon Valley and Wall Street also don't show up in the data, as both sectors saw this month**.
Restaurants and hotels are the biggest job creators in the post-pandemic recovery," said Nela Richardson, chief economist at ADP. "But the boost has passed, and the return trend in the leisure and hospitality sector suggests that the economy as a whole will see more modest hiring and wage growth in 2024. ”
Companies with 50 to 499 employees created jobs, adding 68,000 people. Small businesses contributed only 6,000.
Two days before the release of the ADP report, the U.S. Department of Labor released the more closely watched non-farm payrolls. The two reports are likely to differ widely, although private employment was close in October, as the Labor Department reported an increase of 99,000, just 7,000 below the revised ADP figure.
Nonfarm payrolls, including employment, rose by 150,000 in October and are expected to add 190,000 in November, according to Dow Jones data.
Another sign of loosening in the labor market came on Tuesday, when the U.S. Labor Department reported that job openings fell to 8.73 million in October, the lowest level since March 2021.
Correction: Annual salary increase of 56%, which ADP said was the smallest increase since September 2021. Earlier versions incorrectly reported the month. The U.S. Department of Labor reported that private payrolls rose by 99,000 in October, just 7,000 below the revised ADP figure. An earlier version incorrectly stated a number.
Edit the search image