Slowing Labor Market: Private Payrolls Growth Falls Short of Expectations
The latest report from ADP reveals a slowdown in the labor market, with private payrolls growth falling short of expectations in November. Companies added 146,000 jobs, a significant drop from the revised 184,000 in October and below the estimated 163,000.
Industry Performance: A Mixed Bag
While education and health services led the way with 50,000 new jobs, construction followed closely with 30,000 additions. Trade, transportation, and utilities saw 28,000 new positions, and the other services category contributed 20,000 jobs. However, manufacturing took a hit, losing 26,000 positions, and businesses with fewer than 50 employees reported a decline of 17,000.
Wage Growth Accelerates
Despite the slower job growth, wage growth accelerated by 4.8%, marking a faster gain than October for the first time in 25 months. This upward trend suggests that employers are still willing to invest in their workforce, even as the labor market cools.
Comparison to BLS Report
While ADP’s count fell short of expectations, it still outpaced the Bureau of Labor Statistics’ (BLS) nonfarm payrolls count, which showed a meager increase of 12,000 jobs in October. The BLS report, set to be released Friday, is expected to show growth of 214,000 jobs, according to Dow Jones estimates.
Expert Insights
ADP’s chief economist, Nela Richardson, noted that “while overall growth for the month was healthy, industry performance was mixed.” She highlighted the struggles in manufacturing, financial services, and leisure and hospitality, which were softer than expected.
As the labor market continues to evolve, it remains essential to monitor these trends and their impact on the economy. Stay ahead of the curve with the latest news and insights on the job market and beyond.
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