The Dow Jones (DJIA) opened lower on Wednesday as ADP’s National Employment Report further adds to concerns about labor market weakness.
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U.S. private sector employment fell by 32,000 jobs in November, down from 42,000 additions in October and badly missed the estimate for 10,000 additions. “Hiring has been choppy of late as employers weather cautious consumers and an uncertain macroeconomic environment,” said ADP Chief Economist Dr. Nela Richardson.
Small Businesses Strained by Tariffs and Selective Spending
Over the past three months, the U.S. has now lost an average of 4,333 jobs per month, marking the first three-month decline since 2020, said Creative Planning Chief Market Strategist Charlie Bilello.
Small businesses are faring much worse than larger firms. Companies with 49 or fewer employees lost 120,000 jobs during the month, while mid-sized firms with between 50 and 499 employees saw 51,000 additions. Large companies with 500 or more employees added 39,000 jobs.
“It’s been a very tough year for small biz due to tariffs and more selective spending from lower and middle-class consumers,” said Navy Federal Credit Union Chief Economist Heather Long in an X post.
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