Private payroll growth was slower than expected in November, reflecting a slowing labor market, according to a report from ADP on Wednesday.
Companies added 146,000 jobs for the month, below the downwardly revised 184,000 in October and below the Dow Jones estimate of 163,000.
Education and health services led to job creation, adding 50,000 positions this month. This was followed by the construction industry with 30,000 new jobs, trade, transport and supply with 28,000 new jobs and the “other services” category with 20,000 new jobs.
Manufacturing lost 26,000 jobs over the month. Companies with fewer than 50 employees also saw a decline of 17,000.
Wage growth accelerated to 4.8%, a faster increase than in October and the first time in 25 months.
“While overall growth was healthy this month, industry performance was mixed,” said Nela Richardson, chief economist at ADP. “Manufacturing was the weakest we have seen since the spring. Financial services and leisure and hospitality were also weak.”
Despite the lower-than-expected total and October's downward revision, the ADP figure was still well above the Bureau of Labor Statistics' more closely watched nonfarm payrolls, which saw an increase of just 12,000 jobs in October.
The BLS report is scheduled to be released on Friday and is expected to show growth of 214,000, according to Dow Jones Boeing Strikes and storms in the Southeast reduced the October total.
Correction: Wage growth accelerated 4.8%, a faster increase than in October, the first time in 25 months. In a previous version the number of months was incorrect. This story has also been updated to correct the name of the Bureau of Labor Statistics.
Comments are closed.