Hiring slowed at private employers in November, according to this month’s ADP National Employment Report. The report showed that private payrolls added 179,000 jobs last month — fewer than the 195,000 jobs predicted by economists, per Reuters.
“Job growth is strong, but has likely peaked,” said Mark Zandi, chief economist of Moody’s Analytics, which produces the report with ADP. “This month’s report is free of significant weather effects and suggests slowing underlying job creation. With very tight labor markets, and record unfilled positions, businesses will have an increasingly tough time adding to payrolls.”
Where Jobs Are Growing
Hiring was highest at mid-sized businesses. Employers with between 50 and 499 workers added 119,000 jobs from October to November.
“Midsized businesses added nearly 70 percent of all jobs this month,” said Ahu Yildirmaz, vice president and co-head of the ADP Research Institute. “This growth points to the midsized businesses’ ability to provide stronger wages and benefits. It also suggests they could be more insulated from the global challenges large enterprises face.”
Large businesses (500+ employees) added 13,000 jobs; small businesses (fewer than 50 employees) added 46,000 jobs.
Several industries on the service-providing side saw gains last month, including professional and business services (+59,000 jobs), education and health (+49,000 jobs), leisure and hospitality (+26,000 jobs), trade, transportation and utilities (+18,000 jobs) and financial activities (+8,000 jobs).
Goods-producing industries also added to their payrolls, led by construction (+10,000 jobs). Manufacturing added 4,000 jobs and mining added 2,000 jobs.
Tomorrow’s report from the Labor Department will include data on jobs added to public and private, non-farm payrolls, as well as the updated unemployment rate and data on wage growth. Per The Wall Street Journal, economists predict that the report will show the addition of 198,000 jobs and an employment rate holding steady at 3.7 percent.
The PayScale Index, which tracks the change in wages for employed U.S. workers, showed 0.4 percent year-over-year growth for Q3 2018.
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