A recent report from ADP, a prominent payroll processing company, unveiled a modest increase in private sector employment across the United States for November, falling slightly below forecasted expectations. According to ADP, private sector employment rose by 146,000 jobs in November, following a revised increase of 184,000 jobs in October.
Economists had initially predicted a growth of 165,000 jobs in the private sector, in contrast to the originally reported surge of 233,000 for the previous month.
"While the month's overall growth appeared robust, performance across industries varied significantly," noted ADP's chief economist, Nela Richardson. "Manufacturing saw its weakest performance since spring, while financial services and leisure and hospitality sectors also experienced softness."
The report detailed that manufacturing sector employment decreased by 26,000, whereas employment in financial activities saw a modest gain of 5,000 jobs, and the leisure and hospitality sector added 15,000 jobs.
Furthermore, ADP highlighted that year-over-year pay growth for employees remaining in their positions increased for the first time in over two years, rising to 4.8 percent. Similarly, those changing jobs saw an increase in year-over-year pay growth, reaching 7.2 percent.
Looking ahead, the Department of Labor is set to release its comprehensive monthly jobs report on Friday, covering both public and private sector employment. Economists anticipate an employment increase of 200,000 jobs for November, compared to a modest gain of 12,000 jobs in October, with an expected slight rise in the unemployment rate to 4.2 percent, up from 4.1 percent.
