The US labor market showed signs of cooling in November, but remained surprisingly robust, Bloomberg reports, citing data released Wednesday by the ADP Research Institute.
Private sector payrolls increased by 146,000 jobs last month, slightly below expectations but still indicating persistent demand for workers.
Economists had predicted a 150,000 increase, following an October rise that was revised down from 202,000 to 184,000. The November figures paint a picture of a mixed employment landscape.
Growth was strongest in the education and health services sectors, and construction also saw significant gains. However, manufacturing jobs experienced their largest monthly decline in over a year, while hiring in leisure and hospitality, and financial services, remained sluggish.
Despite the moderation in job growth, the report suggests the labor market continues to defy expectations in the face of persistent inflation and higher interest rates. This resilience is likely welcome news for the Federal Reserve, which has shifted its focus from combating inflation through labor market tightening to preserving employment while managing price pressures. The central bank has indicated that it is closely monitoring the employment situation as it considers future interest rate decisions.
The ADP report provides a snapshot of private sector employment and precedes the closely watched monthly jobs report from the Bureau of Labor Statistics, due out next week.
