U.S. Private Sector Creates 307,000 jobs in November -- ADP

By Xavier Fontdegloria

The nonfarm private sector in the U.S. added 307,000 jobs in November, signaling a slowdown in payroll gains, data from ADP National Employment Report showed Wednesday.

Total U.S. nonfarm private employment increased by 307,000 in November from October. Economists polled by The Wall Street Journal were expecting it to show a bigger gain of 475,000 jobs.

November's reading signals that the job-creation pace slowed in the month compared with October, when 404,000 jobs were gained, up from an initial estimate of 365,000.

The U.S. has been adding payroll gains uninterruptedly since May, when the economy reopened after a lockdown imposed to control the spread of the coronavirus. The labor market, however, is halfway from recovering the record-breaking 19.4 million jobs that were destroyed in April.

"While November saw employment gains, the pace continues to slow," Ahu Yildirmaz, co-head of the ADP Research Institute, said.

Medium businesses, between 50 and 499 employees, are the ones which added the most jobs, with an increase of 139,000. Small businesses, with a maximum of 49 employees, gained 110,000 jobs and large businesses, those of at least 500 workers, created 58,000 jobs.

By sector, in November the vast majority of jobs were created in the service-providing sector, particularly leisure and hospitality, which had an increase of 95,000 jobs. Health care and social assistance gained 60,000 jobs.

The goods-producing sector posted a 31,000 jobs gain, data showed, 22,000 of them in the construction sector.

"Job growth remained positive across all industries and sizes," Mr. Yildirmaz said.

The report, carried out by the ADP Research Institute along with Moody's Analytics, is based on data through the 12th of the month.

The U.S. Department of Labor is expected to release its November employment report, which covers the same period as the ADP National Employment Report, on Friday. Economists are expecting it to show nonfarm payrolls up 440,000 jobs for the month, and a reduction in the unemployment rate to 6.7% from 6.9% in October.

Write to Xavier Fontdegloria at [e-mail]

(END) Dow Jones Newswires

December 02, 2020 08:49 ET (13:49 GMT)

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