Private Hiring Loses 32,000 Jobs in November Ahead of Fed Rate Cut Decision

Employment in the private sector fell by 32,000 jobs in November, driven by major cuts at small businesses, bolstering the case for another Federal Reserve rate cut next week.

Employers with fewer than 50 workers reported shedding 120,000 jobs last month, even as medium and large businesses expanded their payrolls by 51,000 and 39,000 new hires, respectively, according to data released Wednesday by payroll processor, ADP. 

Job creation in the private sector has been flat during the second half of 2025, and November hiring was particularly weak in manufacturing, professional and business services, information, and construction.

Industries that added the most jobs in November included education, health services, hospitality, and mining. 

Meanwhile, pay growth has remained on a downward spiral, with an increase of just 4.4% year over year, down 0.1 percentage point from October. 

"Hiring has been choppy of late as employers weather cautious consumers and an uncertain
macroeconomic environment," says Nela Richardson, Ph.D., chief economist at ADP. "And while November's slowdown was broad-based, it was led by a pullback among small businesses."

The November decline followed a strong October, when employers added 47,000 jobs, according to an upward revision. 

The unexpected plunge in private hiring comes a week before the Federal Reserve’s policymakers will meet to decide whether to trim the federal funds rate for a third time this year to firm up the softening labor market.  

In financial and prediction markets, the probability of another quarter-point rate cut on Dec. 10 immediately jumped to roughly 89% to 95%.

The Fed uses higher interest rates to rein in inflation and lower rates to insure maximum employment.

The ADP report will be the last jobs metric Fed officials will see before the Federal Open Market Committee (FOMC) meeting, since the Bureau of Labor Statistics will not release its November employment figures until Dec. 16 due to a delay caused by the government shutdown.