Private sector employment grew by 146,000 jobs in November, according to ADP’s latest report, marking a slowdown from the 184,000 jobs added in October.
- This was the fourth-worst month for private payroll growth in 2023, reflecting a labor market that is cooling but remains stable.
Job Growth: Education and health services led job creation with 50,000 new positions, followed by construction with 30,000 and trade, transportation, and utilities adding 28,000.
- On the downside, manufacturing lost 26,000 jobs, its weakest performance since spring.
- Regionally, the South accounted for over 40% of the month’s job growth with 61,000 new positions, followed by the Northeast, Midwest, and West.
Pay: Year-over-year pay gains for job-stayers ticked up to 4.8%, marking the first increase in over two years, while job-changers saw higher wage growth at 7.2%.
What They’re Saying: Nela Richardson, ADP’s chief economist, described the month as a mixed bag, “While overall growth for the month was healthy, industry performance was mixed. Manufacturing was the weakest we’ve seen since spring. Financial services and leisure and hospitality were also soft.”
Bottom Line: The November report points to a gradually cooling labor market with no dramatic shifts. Job creation is slowing but remains steady enough to avoid major economic concerns, mirroring trends in the JOLTS report. This stability suggests the Federal Reserve is unlikely to adjust its current policy trajectory.
