Private sector employers reported modest hiring growth in November.
The U.S. economy added 103,000 private-sector jobs in November compared with 106,000 in October, suggesting private employers saw reduced hiring needs during the month, according to the latest ADP National Employment Report released Wednesday.
November brought “moderate growth in hiring” and another “slowdown in pay gain,” the report states. “Both goods and services saw weakness, with leisure and hospitality and manufacturing posting declines.”
Overall, the goods industry shed 14,000 net jobs in November, led by manufacturing (-15,000) and construction (-4,000). Natural resources and mining reported a jobs increase (+5,000) during the month.
The service sector outperformed the good sector, adding 117,000 net jobs in November. Job gains were led by Trade, transportation & utilities (+55,000), followed by education & health (+44,000), other services (+15,000), financial activities (+11,000), and information (+4,000). Job losses occurred in leisure and hospitality (-7,000) and professional/business services (-5,000).
“Restaurants and hotels were the biggest job creators during the post-pandemic recovery. But that boost is behind us, and the return to trend in leisure and hospitality suggests the economy as a whole will see more moderate hiring and wage growth in 2024,” ADP Chief Economist Nela Richardson said in the report.
In terms of the month-over-month changes by establishment size, data shows mid-size companies (those with 50-499 employees) netted the highest job increase (+68,000) in November. Large companies (those with 500+ employees) added a net 33,000 jobs during the month while small companies (those with 1-49 employees) added 6,000 net jobs.
The ADP National Employment Report is published monthly by the ADP Research Institute in collaboration with the Stanford Digital Economy Lab.
Additional ADP payroll data reported by The Dallas Express suggests that, on average, U.S. workers who stayed at the same job over the last 12 months received a 5.7% pay increase, while people who changed jobs saw their wages jump 8.4% year-over-year in October.
