Employers put the brakes on hiring
U.S. employers unexpectedly put the brakes on hiring in November, according to ADP Research Institute and Moody’s Analytics.
Private sector employment increased by 67,000 jobs, dropping 45% from the prior month’s pace, according to the jobs report issued on Wednesday. Economists expected an increase of 150,000 jobs in November, according to the average estimate in a Dow Jones poll.
“The job market is losing its shine,” said Mark Zandi, chief economist of Moody’s Analytics. “Manufacturers, commodity producers, and retailers are shedding jobs. Job openings are declining and if job growth slows any further unemployment will increase.
The healthcare industry was a bright spot in the report, while the manufacturing sector continued to struggle, said Ahu Yildirmaz, ADP Research Institute’s vice president and co-head of the ADP Research Institute.
“The goods producers still struggled; whereas, the service providers remained in positive territory driven by healthcare and professional services,” Yildirmaz said. “Job creation slowed across all company sizes; however, the pattern remained largely the same, as small companies continued to face more pressure than their larger competitors.”
The chart below demonstrates the rate of increase since 2013:
The report reveals that the number of jobs added in October was revised down from 125,000 to 121,000.
Below is a breakdown of job segments that saw changes in employment between October and November:
The goods-producing sector decreased by 18,000 jobs, including:
Natural resources and mining: Decreased 6,000 jobs
Construction: Decreased 6,000 jobs
Manufacturing: Decreased 6,000 jobs
The service-providing sector increased by 85,000 jobs, including:
Information: Decreased 8,000 jobs
Financial activities: Increased 11,000 jobs
Professional and business services: Increased 28,000 jobs
Education and health services: Increased 39,000 jobs
Leisure and hospitality: Increased 18,000 jobs
Other services: Increased 12,000 jobs
NOTE: This report is a monthly measure of the change in total U.S. non-farm private employment derived from actual, anonymous payroll data of client companies served by the company. The data is collected and processed with statistical methodologies similar to those used by the U.S. Bureau of Labor Statistics.