Private-sector job growth slows in November amid coronavirus surge, ADP says
Economists expected private employers to create 410,000 jobs in November
FOX Business’ Jackie DeAngelis and Barron’s Roundtable host Jack Otter weigh in on the job market's recovery with another possible shutdown.
Private employers hired at a slower-than-expected pace in November, indicating the labor market's recovery from the coronavirus crisis is slowing amid a resurgence in cases, according to the ADP National Employment Report released Wednesday.
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The report showed that companies created 307,000 new jobs last month, sharply missing the 410,000-job increase that economists surveyed by Refinitiv had predicted.
“While November saw employment gains, the pace continues to slow,” Ahu Yildirmaz, vice president and co-head of the ADP Research Institute, said in a statement. “Job growth remained positive across all industries and sizes.
November hiring was spread across most industries, with the biggest gains taking place in leisure and hospitality, one of the hardest-hit sectors by the pandemic. The sector added 95,000 jobs. Education and health services added 69,000 jobs, while professional and business services added 55,000. Trade, transportation and utilities saw an increase of 31,000.
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Medium businesses led industries by size with the addition of 139,000 jobs last month at firms that employ between 50 and 499 workers. Large businesses added 58,000 jobs, and small businesses added 110,000 employees.
While the data is typically a good indicator of what to expect in the more closely watched jobs report from the Labor Department, the ADP figure has regularly missed the government's count since the pandemic began in mid-March. (In June, for instance, ADP initially said private employers added 2.37 million jobs -- well below the 4.8 million reported by the U.S. government. It also said the economy lost 2.7 million jobs in May, while the Labor Department reported a gain of 2.5 million).
The Labor Department's jobs report is predicted to show the U.S. economy added 481,000 jobs last month, down from October's gain of 638,000. Analysts anticipate unemployment will edge lower to 6.8% from 6.9%.