(Bloomberg) -- Employment at US companies remained firm in November, adding to evidence of a slowing but resilient labor market.
Private payrolls rose by 146,000 last month after an October increase that was revised down to 184,000, according to ADP Research Institute data released Wednesday. The median projection in a Bloomberg survey of economists called for a rise of 150,000.
The report showed employment growth was mixed among industries. Education and health care along with construction led gains, while manufacturing employment dropped by the most in over a year. Hiring in leisure and financial services was also soft.
Overall, there’s still demand for workers in the face of lingering price pressures and elevated borrowing costs. That’s good news for Federal Reserve officials, who no longer view the labor market as a source of inflation and are now focused on preserving employment opportunities.
Fed officials, who lowered interest rates at their last two meetings, have indicated they’re paying more attention to the job market side of their dual mandate now that inflation has generally retreated. However, with price pressures recently proving stubborn in recent months, it’s not clear whether they will follow up with another rate cut at their Dec. 17-18 meeting.
Government Report
The government’s monthly employment report on Friday is projected to show payrolls, including government positions, increased a robust 218,000 in November. Payrolls during the previous month were held back by hurricanes and a massive strike at Boeing Co.
Job growth last month was broad across US regions, and businesses with 20-49 employees were the only ones to reduce payrolls, according to ADP.
The ADP report, published in collaboration with Stanford Digital Economy Lab, showed wage growth picked up. Workers who changed jobs saw a 7.2% increase in pay, and those who stayed put experienced the first acceleration in two years.
ADP bases its findings on payrolls covering more than 25 million US private-sector employees.
--With assistance from Chris Middleton.
(Adds graphic)
©2024 Bloomberg L.P.
