US private sector payrolls saw a sharp decline in November, according to ADP data

The ADP employment report revealed an unexpected decline in US private payrolls, with a drop of 32K in November, compared to an upwardly revised 47K increase in October (previously 42K) and a consensus expectation of a 5K gain.

The report heightened concerns over the labor market, which continues to feel pressure from tariffs and broader economic uncertainty affecting the world’s largest economy.

Market participants now await further clarity from the more comprehensive non-farm payrolls (NFP) report, covering both October and November, scheduled for release on December 16 (delayed from the initial December 5 date).

Meanwhile, the October unemployment report will not be published, as the underlying data required to calculate the rate were not collected during the historically long US government shutdown.

The most recent NFP data for September showed the US economy added 119K jobs, while the unemployment rate increased to 4.4%, marking its highest level since 2021.