A for-hire sign is displayed in the window of a Manhattan business on November 27, 2025 in New York City.
Spencer Platat | Getty Images
A slowdown in the U.S. labor market deepened in November as private companies cut 32,000 jobs, the hardest hit for small businesses, payroll processing firms said Wednesday.
Boosted by the domestic jobs picture, ADP showed that the problems were worse than expected. The decline in payrolls was the sharpest move since October, which saw 47,000 positions up and more than 5,000 economists below the Dow Jones consensus estimate.
Large businesses, companies with 50 or more employees, reported a net profit of 90,000 workers.
However, the number of establishments with fewer than 50 employees fell by 120,000, including a drop of 74,000 among firms with 20 to 49 employees. The total loss was the largest since March 2023.
Education and health services provided 33,000 charter tours, and recreation and hospitality accounted for 13,000. But broad-based declines across industries have eased overall.
The biggest loss came from professional and business services, down from 26,000. Other employment losses included information services (-20,000), manufacturing (-18,000), manufacturing (-18,000) and financial services and construction, both up 9,000.
The wage rate also slowed, with workers at their workplaces down 4.4% year over year, down 0.1 percentage point from October.
“Hiring ended late as employers weather insured customers and unknowns
Macroeconomic environment,” said ADP Chief Economist Nela Richardson.” And while November’s slowdown has become more widespread, it’s caught on among small businesses.”
The ADP report is the latest jobs report due from the Federal Reserve on December 9-10. Futures traders are assigning a near 90% chance that the central bank will set another quarterly interest rate, starting with some officials, despite the need for further easing.
In recent weeks, fed-up politicians have expressed diverging opinions. On the one hand, additional cuts could weigh on inflation, which has been well above the Fed’s 2% target, if needed to address further labor market challenges.
The Bureau of Labor Statistics will issue an involuntary wage on Dec. 16, a late date for state accounting.