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U.S. Private Sector Job Growth Falls Short Of Estimates In November

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Private sector employment in the U.S. increased by less than expected in the month of November, according to a report released by payroll processor ADP on Thursday.

ADP said private sector employment climbed by 179,000 jobs in November after jumping by a downwardly revised 225,000 jobs in October.

Economists had expected an increase of about 195,000 jobs compared to the addition of 227,000 jobs originally reported for the previous month.

"Job growth is strong, but has likely peaked," said Mark Zandi, chief economist of Moody's Analytics. "This month's report is free of significant weather effects and suggests slowing underlying job creation."

He added, "With very tight labor markets, and record unfilled positions, businesses will have an increasingly tough time adding to payrolls."

The report said employment in the service-providing sector grew by 163,000 jobs, reflecting notable job growth in the professional and business services, health care and social assistance, and leisure and hospitality industries.

Meanwhile, ADP said employment in the goods-producing sector crept up by 16,000 jobs, as employment in the construction and manufacturing industries inched up by 10,000 jobs and 4,000 jobs, respectively.

Employment at midsized businesses surged up by 119,000 jobs, representing nearly 70 percent of the new jobs during the month.

"This growth points to the midsized businesses' ability to provide stronger wages and benefits," said Ahu Yildirmaz, vice president and co-head of the ADP Research Institute. "It also suggests they could be more insulated from the global challenges large enterprises face."

ADP said employment at small businesses rose by 46,000 jobs, while employment at large businesses edged up by 13,000 jobs.

On Friday, the Labor Department is scheduled to release its more closely watched monthly employment report, which includes both public and private sector jobs.

Employment is expected to increase by 205,000 jobs in November after jumping by 250,000 jobs in October, while the unemployment rate is expected to hold at 3.7 percent.

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