Business hires continue to slow, hitting lowest rate since summer

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Private payrolls rose at its slowest pace since July amid a slowdown in hiring by large companies in November, according to a report released by ADP on Wednesday.
The companies hired 307,000 workers for the month, well below the 475,000 estimates from a Dow Jones survey of economists.

The total represents a decline from the 404,000 revised upward in October and is the smallest gain since the 216,000 increase in July, according to the report, which is compiled in conjunction with Moody’s Analytics.

The revision added 39,000 to the original estimate for October, so the November shortfall is not as bad as it looks. The markets reacted little to the report.

Most of the hires were from companies with 50 to 499 workers, which added 139,000 hirings. Small businesses added 110,000 while large businesses lagged behind with just 58,000 after adding 116,000 in October.

“While November saw job gains, the pace continues to slow,” said Ahu Yildirmaz, vice president and co-director of the ADP Research Institute. “Job growth has remained positive in all industries and all sizes. ”

As is generally the case, the service industries provided the bulk of the jobs, with 276,000 jobs. Leisure and hospitality, which has been battered during the pandemic, has added 95,000 workers despite increasing restrictions on bars and restaurants as coronavirus cases continue to rise.

Education and health services contributed 69,000 people, mostly on the health care side, while professional and business services increased by 55,000. Construction increased by 22,000 while manufacturing added. 8,000.

The ADP tally sometimes serves as a guide for the more closely watched non-farm payroll report, although the two often differed significantly during the pandemic.

The Ministry of Labor is expected to announce Friday that the economy in November added 440,000 jobs, up from 638,000 in October. It is estimated that private payrolls will increase by 590,000, according to FactSet, with a decline of about 93,000 census workers during the survey period the ministry subtracts from the number of titles.

The Dow Jones estimate also predicts an unemployment rate of 6.7%, compared to 6.9%.

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