Key Points
- U.S. private payrolls unexpectedly fell by 32,000 jobs in November, according to the ADP report.
- The result was a major surprise, as economists had forecast a gain of 10,000 jobs.
- The official government jobs report from the BLS has been delayed until December 16 due to the shutdown.
- Economists suggest economic uncertainty from tariffs may be causing a “paralysis” in the labor market.
U.S. private companies cut jobs last month in a surprise downturn that signals potential weakness in the labor market, according to the latest ADP employment report on Wednesday.
Private payrolls fell by 32,000 in November, a stark reversal from the upwardly revised 47,000 jobs added in October. The drop defied economists’ predictions of a 10,000 job gain, raising questions about the health of the economy.
The ADP report, developed with the Stanford Digital Economy Lab, often gives an early peek at the job market. However, it’s worth noting that its numbers don’t always align perfectly with official government data from the Bureau of Labor Statistics (BLS).
All eyes will now turn to that official BLS report, which is due on December 16. The release was delayed because of the recent government shutdown. In a strange twist, that shutdown means we will never know the official October unemployment rate, as the government was unable to collect the necessary data.
While the ADP numbers suggest a cooling labor market, other data, like weekly unemployment claims, have pointed to a “no hire, no fire” situation.
Many economists believe that ongoing economic uncertainty, especially around tariffs, has put the job market in a state of paralysis, with companies hesitant to hire new workers or lay off existing ones. This latest report adds a new layer of concern as the year comes to a close.
