US private payrolls rose in November but less than markets had expected.
Private payrolls in the world’s largest economy increased by 307,000 jobs in November after rising by 404,000 in October. Despite the increase, November’s numbers disappointed after economists forecast an increase of 414,000 private payrolls for November.
Last month’s slowdown in hires was across all industries. However, the hardest hit sector from the coronavirus pandemic – the hospitality ad leisure sector, added the most jobs – 95,000 in total last month.
Elsewhere, according to the ADP report, the education & health sector added 69,000 jobs and construction employment rose by 22,000 jobs. Manufacturers hired 8,000 more workers in November.
COVID-19 Affecting US Labor Market
Without doubt, the soaring new COVID-19 infections and ever-growing business restrictions, are taking its toll on the US jobs market and the US economic recovery in general.
US initial jobless claims have risen for two consecutive weeks as the labour market worsens in the US. Meanwhile, the pandemic continues to worsen across the country. On Tuesday, 176,751 new cases were reported according to The COVID Tracking Project.
Chris Rupkey, chief economist at MUFG in New York commented:
“The rapid spread of the virus across the nation is making it harder to find employment this fall and this puts the entire economic recovery from recession in jeopardy if Congress can’t get it together and vote on a new stimulus package before the end of the year,”
Chris Rupkey
Meanwhile, Daniel Silver, an economist at JPMorgan in New York said:
“The broad message from the ADP report is consistent with what we expect the government data to show, the labor market continued to add jobs on net in November but the pace of job growth slowed,”
Daniel Silver
All eyes will now be on this Friday’s nonfarm payrolls data release. Overall, nonfarm payrolls are expected to show an increase by 481,000 jobs in November after increasing 638,000 in October.
