The U.S. Automatic Data Processing Company (ADP) released a national employment report on Wednesday, December 4, showing that in November, private businesses in the United States added 146,000 new jobs, lower than expected, reflecting a cooling labor market.
According to the latest data from ADP, private companies in the United States hired 146,000 new employees in November, lower than the downwardly revised 184,000 in October, as well as lower than the estimated 163,000 by Dow Jones & Company and the median forecast of 150,000 by economists surveyed by Bloomberg.
The report indicates that the education and healthcare services sector led the growth in employment positions, adding 50,000 new jobs. This was followed by the construction industry, which added 30,000 jobs, and the trade, transportation, and utilities sector, which added 28,000 jobs. The other services industry saw an increase of 20,000 job positions.
The manufacturing sector saw a decrease of 26,000 positions, marking the largest decline in over a year. Hiring in leisure and financial services also remained weak.
Overall, amidst ongoing price pressures and rising borrowing costs, there continues to be a demand for workers in the private sector. This is good news for Federal Reserve officials, who are now no longer viewing the labor market as a source of inflation but are focusing on protecting job opportunities.
Wage growth accelerated by 4.8%, faster than in October, marking the first increase in 25 months. Workers who switched jobs saw their wages rise by 7.2%, while those who stayed in their current positions experienced an increase in wages for the first time in two years.
The ADP survey results are based on payroll data covering over 25 million employees in the U.S. private sector.