Private sector employment in the United States declined by 32,000 jobs in November, marking the first monthly contraction since mid-2023 and underscoring a cautious hiring environment amid uncertain macroeconomic conditions and softening consumer demand. The November ADP National Employment Report, produced in collaboration with the Stanford Digital Economy Lab, is derived from anonymized payroll data covering more than 26 million U.S. workers.
The November contraction was widespread but particularly pronounced among small establishments, which shed 120,000 positions. Medium and large firms added a combined 90,000 jobs, partially offsetting the small-business pullback.
Key industry declines included professional and business services (-26,000), information (-20,000), manufacturing (-18,000), construction (-9,000), and financial activities (-9,000). Gains were concentrated in education and health services (+33,000) and leisure and hospitality (+13,000).
Regionally, the Northeast recorded the largest losses (-100,000), driven by sharp drops in both New England and the Mid-Atlantic. The West was the only region to post meaningful growth (+67,000), led by the Pacific division.
Annual pay for job-stayers rose 4.4 percent year-over-year, down from 4.5 percent in October and continuing a multi-month cooling trend. Job-changers saw pay increase 6.3 percent, also slower than the prior month’s 6.7 percent.
Pay growth remained strongest at large firms (4.9 percent) and weakest at the smallest establishments with 1–19 employees (2.5 percent). Across industries, financial activities led at 5.2 percent while information and professional/business services trailed at 4.2 percent each.
"Hiring has been choppy of late as employers weather cautious consumers and an uncertain macroeconomic environment," said Dr. Nela Richardson, chief economist, ADP. "And while November's slowdown was broad-based, it was led by a pullback among small businesses."
The latest figures reinforce a labor market that has shifted from robust post-pandemic growth to near-stagnation in the second half of 2025, with employers adopting a wait-and-see stance amid elevated uncertainty.
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