ADP: Small business drive large 32K private payroll drop in November

 

ADP: Small business drive large 32K private payroll drop in November

Published: Dec. 3, 2025 at 10:23 AM 

By Chris Benson, UPI

 ADP said Wednesday that small businesses and private companies were hit hardest in November by a slowdown in the U.S. labor market.

 The private payroll processor's monthly employment report indicated some 32,000 were shed by private employers. It said job creation had been "flat" during the second half of this year with pay growth on a "downward" trend. 

 "Hiring has been choppy of late as employers weather cautious consumers and an uncertain macroeconomic environment," said ADP chief economist Nela Richardson. "And while November's slowdown was broad-based, it was led by a pullback among small businesses," Richardson said in a statement. 

 It marked a sharp decline from October with a revised 47,000 job gain, and arrived under Wall Street estimates of a near 40,000 increase. Bigger businesses with 50 or more workers saw a 90,000 net job gain, but establishments retaining less than 50 employees saw a 120,000 decline in jobs. 

It marked that largest drop since March 2023. Some 33,000 new hires were seen in areas of education and health services come on top of around 13,000 jobs added in the leisure and hospitality industry, which was an overall broad decline. 

 November hiring was particularly weak in manufacturing, professional and business services, information, and construction. Around 26,000 jobs were lost in professional and business services, some 20,000 in information services, and about 18,000 in manufacturing, finance and construction with losses both at 9,000. 

 Meanwhile, the Federal Reserve is slated to meet Dec. 9-10 with members reportedly holding misgivings over a slight cut in interest rates. The U.S. Department of Labor will release its numbers on nonfarm payroll jobs Dec. 16, which was a delayed unveiling due to the government shutdown.