The U.S. labor market weakened sharply in November, with private employers cutting 32,000 jobs, according to ADP. The decline—far below economists’ expectations for a gain of 40,000—was driven almost entirely by small businesses, which shed 120,000 jobs, the largest drop since March 2023.

Job gains were concentrated in education and health services (+33,000) and leisure and hospitality (+13,000), but broad losses across most other sectors pulled totals lower. Professional and business services (-26,000), information (-20,000), manufacturing (-18,000), financial activities, and construction (each -9,000) were all hit.

Wage growth slowed slightly, with job-stayers seeing a 4.4% year-over-year increase. ADP’s chief economist said hiring remains choppy amid cautious consumers and economic uncertainty, especially for small businesses.

Historically, as the labor market weakens, it puts pressure on the Fed to loosen policy and it also causes investors to steer their investments more to the Bond market, which causes interest rates to moderate.

Source : https://cnb.cx/4pMD7iJ