Southeast Asia Information Port (www.dnyxxg.com) – Data released by ADP on October 3rd showed that the U.S. private sector unexpectedly lost 32,000 jobs in November. Analysts say this data reflects layoffs in private companies, exacerbating concerns about a weakening U.S. labor market.
The data shows that U.S. job growth is expected to stagnate in the second half of 2025. In November, private sector jobs decreased by 32,000. Hiring was particularly weak in manufacturing, professional and business services, information technology, and construction. Wage growth also declined during the same period.
The data also shows that small private businesses with fewer than 50 employees lost 120,000 jobs in November, the largest monthly decline since May 2020. Regionally, the northeastern and southern regions of the U.S. saw significant job losses.
Nera Richardson, chief economist at ADP, said the recent hiring market has been volatile due to employers facing cautious consumer sentiment and an uncertain macroeconomic environment. While the hiring slowdown in November was widespread, the main reason was a reduction in job openings by small businesses.
Bloomberg reported that while the market had previously expected an increase in private sector jobs in the U.S. in November, the latest data released by ADP reflected severe layoffs, exacerbating concerns about a weakening labor market. This unofficial data was receiving more attention than usual due to the delay in the release of official employment data caused by the government shutdown.
CNBC, citing analysts, reported that Federal Reserve policymakers are divided recently, with some officials believing that interest rate cuts are necessary to prevent further deterioration in the labor market, while others worry that rate cuts could exacerbate inflation. Although policymakers remain hesitant about whether further rate cuts are needed, the latest trading in the interest rate futures market indicates that the probability of a 25 basis point rate cut by the Fed this month is approaching 90%. (End)
