ADP Shows November Job Loss While Economists Warn Data Diverges From Government Indicators

Benzinga

ADP said private payrolls fell by 32,000 in November, the biggest drop since March 2023, though economists argue the report contradicts broader indicators that show only mild softness. Small businesses shed 120,000 jobs under tariff pressure, while medium and large firms added positions. The surprisingly weak ADP print could shape sentiment ahead of the Fed’s split decision on further rate cuts.

Transcript

00:00It's Benzinga, bringing Wall Street to Main Street.

00:03An ADP report shows that U.S. private payrolls fell by 32,000 in November,

00:07the largest drop since March 2023, according to Reuters.

00:12Economists said the ADP declined conflicts with other labor indicators and official data,

00:16which point to mild softness and modest November job growth,

00:20rather than the deterioration suggested by the report.

00:23Economists said tariffs raised costs for small businesses and drove a 120,000 job loss,

00:29while medium and large enterprises added 51,000 and 39,000 jobs.

00:34Broader data showed labor market paralysis amid tariff uncertainty,

00:38while services sector employment continued contracting at a slower pace.

00:43Economists said the ADP reading could influence next week's Fed meeting,

00:47where policymakers remain split on further rate cuts.

00:50For all things money, visit Benzinga.com.

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