US private payroll growth slows in November: ADP report

US private payrolls rose much less than expected in November, suggesting labor demand is cooling amid high interest rates, a survey showed on Wednesday.

The private employment increased by 127,000 jobs in November, the National Employment Report from ADP. Data for October was not revised to show 239,000 jobs created.

Economists polled by Reuters had forecast an increase of 200,000 private jobs.

The ADP report, developed in conjunction with Stanford’s Digital Economy Lab, came ahead of the more comprehensive and closely watched employment report from the Bureau of Labor Statistics. work Department this Friday.

Markets are still deliberating how reliable ADP is in predicting the private payrolls component in the official employment report.

According to a Reuters survey of economists, private payrolls would have increased by 200,000 jobs in November after increasing by 233,000 in October. With no job gains expected in the government sector, the employment creation in general they will have increased by 200,000. The economy created 261,000 jobs in October.

Job growth is gradually slowing as the Federal Reserve’s aggressive rate hikes slow demand in the economy. Still, the demand for labor remains strong.

The Fed has raised its policy rate by 375 basis points this year, from near zero to a range of 3.75% to 4.00%, in what has become the fastest cycle of rising credit costs since the 1990s. 1980.

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