ADP says U.S. economy loses jobs for third time in four months. Fed to weigh weak labor market in rate-cut vote.

MW ADP says U.S. economy loses jobs for third time in four months. Fed to weigh weak labor market in rate-cut vote.

By Jeffry Bartash

Businesses cut 31,000 jobs in November to mar biggest decline since spring 2023

Some companies are hiring temporary workers for the holidays, but finding a permanent job is not as easy.

Privately run businesses eliminated jobs in November for the third time in four months, pointing to a broad slowdown in hiring that threatens to nudge unemployment higher and undermine the economy.

ADP said businesses shed 31,000 jobs last month, marking the biggest decline since spring 2023. The last time hiring was this weak was during the pandemic.

The latest ADP report confirms that a broad hiring freeze remains in place as the year draws to a close.

"Hiring has been choppy of late as employers weather cautious consumers and an uncertain macroeconomic environment," said Nela Richardson, chief economist at ADP, the nation's largest processor of payroll checks.

The Federal Reserve is likely to use the ADP report to help guide its decision next week on whether to cut interest rates for the third meeting in a row. Senior Fed officials have been divided over what to do next.

The ADP report, normally a second-tier labor market indicator, has taken on greater importance due to a record government shutdown that stretched from Oct. 1 to Nov. 12.

The mainstay U.S. employment report, produced by the Labor Department, has been canceled for October. And a combined October- November report won't be published for another two more weeks.

Before the shutdown, hiring had slowed dramatically as businesses grappled with the effects of tariffs, a crackdown on immigration and general economic uncertainty.

The saving grace has been a low level of layoffs.

Key details: Wall Street forecasters had predicted a 40,000 increase in private-sector jobs in November.

Big picture: Just like the weather, the labor market has caught a chill - and it's not expected to warm up anytime soon.

The Fed has been so worried that it cut interest rates twice this year, and may do so again next week, to try to prevent a further rise in unemployment.

Market reaction: The Dow Jones Industrial Average DJIA and S&P 500 SPX were set to open higher in Wednesday trading.

-Jeffry Bartash

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

December 03, 2025 08:24 ET (13:24 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.