US private sector adds fewer jobs than expected in November
By Michele Maatouk
Date: Wednesday 02 Dec 2020
(Sharecast News) - Private sector employment in the US rose less than expected in November, according to the latest figures from the ADP.
Employment increased by 307,000 from October, versus expectations of a 420,000 jump. Meanwhile, the October total of jobs added was revised up from 365,000 to 404,000.
Ahu Yildirmaz, vice president and co-head of the ADP Research Institute, said: "While November saw employment gains, the pace continues to slow. Job growth remained positive across all industries and sizes."
Small businesses with fewer than 50 employees added 110,000, while medium-sized businesses with between 50 and 499 members of staff added 139,000.
Large businesses with 500 employees or more created an extra 58,000 jobs.
The services sector added the most jobs - at 276,000 - with the biggest contribution coming from leisure/hospitality, which added 95,000 jobs.
Ian Shepherdson, chief economist at Pantheon Macroeconomics, said the figures weren't great but could have been worse.
"We expected a much weaker number, so this is something of a relief. ADP's measure of private payrolls has undershot the official numbers in each of the past seven months of Covid-afflicted data, though the errors have been much smaller recently than at the start of the pandemic. Based on the experience of the past few months, the ADP reading for November is consistent with about 700-to-750K for Friday's official private payroll number, above the consensus, 560K.
"But this could easily be wrong, in either direction; no advance indicators have been consistently reliable since Covid began to shred the data. The Homebase small business employment data, for example, appear to have been too bearish for November, but the drop in continuing jobless claims looks to have overstated job growth. Note that the recent upturn in initial jobless claims came after the November payroll survey, so whatever payroll number prints on Friday, we expect December to be weaker."
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