The November ADP National Employment Report says private-sector employment rose by 307,000 jobs from October to November.
The monthly ADP national employment report comes from the ADP Research Institute and Moody's Analytics. It is based on active, paid workers on company payrolls.
That ADP payroll data method differs from the Labor Department's Bureau of Labor Statistics (BLS). The BLS counts people as employed if they got a paycheck during the week that includes the 12th of the month.
Even with November gains, the pace is slowing, said Ahu Yildirmaz, vice president and co-head of the ADP Research Institute. Job growth stayed positive across all industries and company sizes.
Economists polled by Reuters expected private payrolls to rise by 410,000 in November. Hiring slowed across all industries last month.
Daniel Silver, an economist at JPMorgan in New York, said the ADP report matches what he expects government data to show. He said the labor market kept adding jobs in November, but at a slower pace.
New York Federal Reserve Bank President John Williams said growth was slowing because of rising COVID-19 cases and a lack of more fiscal stimulus, Reuters reported. The Federal Reserve's Beige Book also described the economy as modest or moderate.
Even with a slower economy, businesses still face a tech talent shortage, said Harley Lippman, Genesis10 CEO. In an interview with the Kansas City Business Journal, he pointed to the strong need for tech talent. He said there are about four job postings for every Java developer and 10 for every .NET developer in the Kansas City market.
The ADP report breaks down U.S. nonfarm private employment by sector and company size. Review it each month and track it over time. That gives a fuller view of job market trends in your business sector. Here are the highlights:
Small and Mid-Sized Businesses Are Hiring
Small and mid-sized businesses hired the most workers in October. Small businesses, with 1-49 employees, added 110,000 new jobs. Mid-sized businesses, with 50-499 employees, added 139,000. Larger businesses, with 1,000 or more employees, added 58,000.
Leisure and Hospitality Ticking Up
The service sector created 276,000 jobs in October. Most of the gains came from leisure and hospitality (95,000), education and health services (69,000), and professional and business services (55,000). No service sector reported job losses in October.
Construction Adds Jobs Too
The goods-producing sector added 31,000 jobs. Construction led the gain with 22,000 new jobs, showing steady construction job growth. Manufacturing added 8,000, while natural resources and mining grew by 1,000.
The matched sample used to build the ADP National Employment Report comes from ADP payroll data. It includes about 460,000 U.S. clients and nearly 26 million workers in the U.S. The October total was later revised from 365,000 to 404,000.
Q&A
Question: What did the November ADP National Employment Report show, and how did it compare with expectations?
Answer: The report said private-sector employment rose by 307,000 from October to November, which was below economist forecasts of about 410,000. ADP said job growth stayed positive across all industries and company sizes, but hiring kept slowing. Economists cited by Reuters said this matches what government data would likely show: net job gains in November, but at a slower pace.
Question: How does the ADP report differ from BLS data?
Answer: ADP's report is based on active, paid employees on company payrolls from ADP's client base. The BLS counts people as employed if they got a paycheck during the week that includes the 12th of the month. The report comes from the ADP Research Institute with Moody's Analytics. It uses a large matched sample of about 460,000 U.S. clients, representing nearly 26 million workers. ADP figures can also be revised as more data arrive. For example, October's total was revised from 365,000 to 404,000.
Question: Which business sizes and sectors led hiring, and which month do these details cover?
Answer: These breakdowns are for October. Small businesses, with 1-49 employees, added 110,000 jobs. Mid-sized businesses, with 50-499 employees, added 139,000, and large businesses, with 1,000 or more employees, added 58,000. In sectors, services created 276,000 jobs, led by leisure and hospitality (+95,000), education and health services (+69,000), and professional and business services (+55,000). No service subsector reported losses. Goods-producing sectors added 31,000 jobs, led by construction (+22,000), manufacturing (+8,000), and natural resources and mining (+1,000).
Question: What is contributing to the slowdown in job growth, according to Federal Reserve commentary?
Answer: New York Fed President John Williams pointed to rising COVID-19 cases and the lack of more fiscal stimulus as major headwinds. The Fed's Beige Book also described the economy as modest or moderate, which suggests slower momentum.
Question: If overall job growth is slowing, why is there still a shortage of tech talent?
Answer: Even with a broader slowdown, demand for skilled tech workers is still strong. Genesis10 CEO Harley Lippman said there is a strong need for tech talent. In the Kansas City market, he said there are about four job postings for every Java developer and 10 for every .NET developer, which shows a clear tech talent shortage.
