ADP Data Show November Private Hiring Slowed with Sharp Drop in Small-Business Hiring

Hadisur Rahman, JadeTimes Staff

H. Rahman is a Jadetimes news reporter covering Business

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Image Source: David Paul Morris / Bloomberg via Getty Images

Private employers in the United States trimmed payrolls in November, according to a report from ADP, as the pace of hiring cooled across company sizes and small businesses bore the heaviest losses. The payroll processor noted a total decline of 32,000 positions, below economists’ expectations for a 40,000 gain, signaling a slower jobs market amid ongoing economic headwinds.

ADP chief economist Nela Richardson characterized November’s payroll figures as a broad slowdown, with a pronounced pullback among smaller firms. Firms with fewer than 50 employees led the decline, shedding 120,000 jobs in the month. Richardson cited higher costs tied to tariffs, rising utility bills, and other cost pressures as burdens for smaller enterprises, which typically operate with thinner margins and fewer buffers.

Hiring gains in medium- and large-sized companies were not enough to offset the small-business losses, though these larger firms still posted net job additions. Richardson emphasized that the slowdown appears concentrated among the “mom-and-pop” segment, while larger employers continued to add positions at a more modest pace under a cautious consumer environment.

Industries most affected in November included professional and business services, manufacturing, and information services. A notable exception was the natural resources and mining sector, which expanded by 8,000 roles, a development Richardson linked to infrastructure investments and the energy-intense needs of data centers.

The report arrives as the broader employment outlook remains unsettled. Government data for the same period had not yet been released due to ongoing shutdown-related delays, complicating the outlook for the Labor Department’s authoritative monthly jobs report. Economists expect the official BLS data to reflect continued volatility in hiring patterns, with downstream implications for monetary policy at the Federal Reserve.