❓WHAT HAPPENED: Private sector employers in the U.S. cut 32,000 jobs in November, according to payroll firm ADP.
👤WHO WAS INVOLVED: ADP, small businesses, and economists analyzing the labor market.
📍WHEN & WHERE: November 2025, across the United States.
💬KEY QUOTE: “Hiring has been choppy of late as employers weather cautious consumers and an uncertain macroeconomic environment,” said Nela Richardson, ADP chief economist.
🎯IMPACT: The report increases expectations of a Federal Reserve interest rate cut next week.
New data from payroll firm ADP shows that American private sector employers shed 32,000 jobs in November. While the job losses are concerning on their own, the data is especially worrying as forecasts had projected a rise in employment numbers for the month, some going as high as 40,000 jobs added.
ADP chief economist Nela Richardson commented on the situation, stating, “Hiring has been choppy of late as employers weather cautious consumers and an uncertain macroeconomic environment.” Small businesses with fewer than 50 employees were responsible for most of the losses, shedding 120,000 jobs during the month.
The professional and business services industry led the job cuts, eliminating 26,000 positions, while the leisure and hospitality sector added 13,000 jobs in preparation for the holiday season. Matthew Martin, senior U.S. economist at Oxford Economics, noted, “Small firms, those with less than 50 employees, have felt the pinch of policy uncertainty, rising input costs and high interest rates the most.”
Although ADP’s figures are not considered a definitive predictor of overall job growth, they are closely monitored as an economic indicator. The data comes at a time when official employment statistics remain incomplete due to the recent 43-day federal government shutdown initiated by the Senate Democrats.
Economists suggest that the ADP report increases the likelihood of the Federal Reserve moving to lower interest rates again at its upcoming Federal Open Market Committee (FOMC) meeting on December 9-10. Oren Klachkin, Nationwide Financial Markets economist, stated, “There’s a high level of disagreement among Fed policymakers right now, but we maintain our call the doves will prevail over the hawks and the FOMC to vote for another 25bps interest rate reduction at next week’s meeting.”
The National Pulse reported in late November that Labor Department (DOL) data showed the U.S. economy adding 119,000 jobs in September, exceeding Wall Street expectations.
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