Private employers added 67,000 jobs in November, according to the ADP National Employment Report — the fewest since May. Prior to the report’s release, economists polled by Reuters were predicting the addition of 140,000 jobs.
“The job market is losing its shine,” said Mark Zandi, chief economist of Moody’s Analytics, which produces the report with ADP. “Manufacturers, commodity producers, and retailers are shedding jobs. Job openings are declining and if job growth slows any further unemployment will increase.”
‘Service Providers Remained in Positive Territory’
“The goods producers still struggled; whereas, the service providers remained in positive territory driven by healthcare and professional services,” said Ahu Yildirmaz, vice president and co-head of the ADP Research Institute. “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.”
Goods-producing industries shed 18,000 jobs in November. Construction, manufacturing and mining all declined by 6,000 positions.
Service-providing industries added 85,000 jobs total, led by education/health services (+39,000 jobs), professional/business services (+28,000 jobs ), leisure/hospitality (+18,000 jobs) and financial activities (+11,000 jobs). Trade/transportation/utilities lost 15,000 jobs last month, while information lost 8,000 jobs.
Looking Ahead to the Labor Report
Friday’s report from the Bureau of Labor Statistics will tally jobs added to public and private, non-farm payrolls, as well as the updated unemployment rate and wage growth data. Economists surveyed by Reuters predict the addition of 180,000 jobs to non-farm payrolls and an unemployment rate holding steady at 3.6%.
The PayScale Index, which measures the change in wages for employed U.S. workers, showed 2.6% year-over-year wage growth for Q3 2019. However, real wages — the buying power of workers’ pay after inflation — have declined 9.6% since 2006.
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