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ADP National Employment Report: Private Sector Employment Shed 32,000 Jobs in November; Annual Pay was Up 4.4%

1. Private sector lost 32,000 jobs in November, impacting employment metrics. 2. Year-over-year pay growth slowed to 4.4%, down from 4.5%. 3. Job losses were particularly noticeable in small businesses and service industries. 4. Manufacturing, professional, and construction sectors significantly impacted job losses. 5. Economic uncertainty continues to affect employer hiring strategies.

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FAQ

Why Bearish?

The job loss is a negative signal for ADP, similar to past reports during downturns, which historically led to a decline in ADP's stock price. Employers' uncertainty typically translates to reduced client engagement and service utilization from ADP.

How important is it?

The report directly correlates with ADP's core business, predicting reduced demand for ADP's services in a contracting job market.

Why Short Term?

Immediate job trends are reflective of current economic conditions. A sustained trend could weaken ADP's employment services in the foreseeable future, affecting results next quarter.

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ADP National Employment Report: Private Sector Employment Drops 32,000 Jobs in November

The latest ADP National Employment Report reveals a decline of **32,000 jobs** in the private sector during November 2025, while annual pay increased by **4.4%** year-over-year. This report, produced by ADP Research in partnership with the Stanford Digital Economy Lab, offers critical insights into the current state of the labor market.

Understanding the ADP National Employment Report

The ADP National Employment Report serves as an independent indicator of the labor market, relying on anonymized payroll data from over **26 million** private-sector employees across the United States. In conjunction with ADP's Pay Insights—which analyzes more than **15 million** individual pay changes each month—this report provides a nuanced view of employment trends.

Dr. Nela Richardson, chief economist at ADP, noted, “Hiring has been choppy of late as employers weather cautious consumers and an uncertain macroeconomic environment. While November's slowdown was broad-based, it was led by a pullback among small businesses.”

Key Highlights of the November Jobs Report

  • Change in U.S. Private Employment: -32,000
  • Jobs by Industry:
    • Goods-producing: -19,000
    • Service-providing: -13,000
  • Changes by Sector:
    • Manufacturing: -18,000
    • Financial activities: -9,000
    • Leisure and hospitality: +13,000
  • Regional Changes:
    • Northeast: -100,000
    • Midwest: +45,000
    • West: +67,000
  • Size of Establishments:
    • Small establishments (1-19 employees): -46,000
    • Medium establishments (50-249 employees): +51,000

Annual Pay Insights

In November, wage growth for job-stayers was **4.4%**, a slight decrease from **4.5%** in October. Job-changers experienced a **6.3%** increase in pay, down from **6.7%** the previous month.

Median Change in Annual Pay by Job Type

  • Job-stayers: 4.4%
  • Job-changers: 6.3%

By Industry for Job-Stayers

  • Financial activities: 5.2%
  • Professional/business services: 4.2%

By Firm Size for Job-Stayers

  • Small firms (1-19 employees): 2.5%
  • Large firms (500+ employees): 4.9%

Future Outlook

The December 2025 ADP National Employment Report is scheduled for release on January 7, 2025, at 8:15 a.m. ET, which will offer additional insights into employment trends.

For further details on the ADP National Employment Report and additional resources, visit adpemploymentreport.com.

About ADP

ADP, traded under the symbol ADP on NASDAQ, has been a leader in HR and payroll solutions for over 75 years, helping businesses worldwide tackle their workforce challenges effectively.

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