US preliminary employment data below expectations

US private sector employment increased by 103,000 in November, below market expectations Data showing that US companies reduced their hiring in November showed that the labour market in the country has cooled. The national employment report for November, prepared by the ADP Research Institute in collaboration with the Stanford Digital Economy Lab, has been published. Accordingly, private sector employment in the US increased by 103,000 in November. Private sector employment, which was below market expectations, was expected to increase by 130,000 in this period. Private sector employment data for October was revised from 113,000 to 106,000. The data showed that employment gains were limited by disruptions in the manufacturing, construction, leisure and hospitality sectors. In addition to education and health services, other service-providing sectors such as trade and transportation also made progress. Employment increased by 6,000 in small businesses, 68,000 in medium-sized businesses and 33,000 in large businesses. In the period in question, 117 thousand of the employment increase occurred in the service sector, while the manufacturing sector recorded a decrease of 14 thousand people. The slowdown in wage growth continues According to the ADP special employment data calculated using the payroll information of more than 25 million employees in the US, annual wages increased by 5.6 percent in November. The wage increase, which recorded its lowest increase since September 2021, had been 5.7 percent in October. ADP Research Institute Chief Economist Nela Richardson, in her assessment of the data, reminded that the highest employment was provided in restaurants and hotels in the post-pandemic recovery period, and said, "However, this increase is behind us, and the return to the trend in the leisure and hospitality sectors suggests that the economy as a whole will see more moderate employment and wage growth in 2024."