ADP finds private sector added 179,000 jobs in November
Private sector employers added 179,000 jobs in November, according to payroll giant ADP, as the pace of hiring slackened somewhat at large companies despite corporate tax cuts earlier this year.
Small businesses added 46,000 jobs last month, including 13,000 in businesses with between one and 19 employees, and 33,000 in businesses with between 20 and 49 employees.
Midsized businesses led the way, gaining 119,000 jobs last month. Large businesses added just 13,000 jobs, with the 20,000 gained at companies with between 500 and 999 employees offset by a decline of 7,000 jobs at larger companies with 1,000 employees or more.
The service-providing sector added 163,000 jobs, including 59,000 in professional and business services such as accounting, tax preparation and other services. The goods-producing sector added just 16,000 jobs, however. Franchise employment increased by 11,500 jobs.
“Although the labor market performed well, job growth decelerated slightly,” said Ahu Yildirmaz, vice president and co-head of the ADP Research Institute, in a statement. "Midsized businesses added nearly 70 percent of all jobs this month. This growth points to the midsized businesses' ability to provide stronger wages and benefits. It also suggests they could be more insulated from the global challenges large enterprises face.”
Part of the problem might be attributed to the tight labor market and low unemployment rate. Mark Zandi, chief economist of Moody's Analytics, which compiles the monthly national employment report with ADP, stated, “Job growth is strong, but has likely peaked. This month's report is free of significant weather effects and suggests slowing underlying job creation. With very tight labor markets, and record unfilled positions, businesses will have an increasingly tough time adding to payrolls.”