Private-sector hiring growth moderated in November with the addition of 103,000 jobs in the month, according to an ADP National Employment Report Economy Lab released Wednesday. Meanwhile, annual pay increased 5.6% year-over-year in November. According to ADP, November marked the slowest pace of wage gains since 2021.
The National Employment Report analyzes the payroll transactions of more than 25 million United States workers. The data, produced by the ADP Research Institute in collaboration with the Stanford Digital Economy Lab, showed a service sector gain of 117,000 jobs overall, with education / health adding 44,000 jobs. The biggest gains were seen in trade / transportation / utilities with the addition of 55,000 jobs in November.
“Restaurants and hotels were the biggest job creators during the post-pandemic recovery,” ADP Chief Economist Nela Richardson said in a press release issued in conjunction with the monthly report. “But that boost is behind us, and the return to trend in leisure and hospitality suggests the economy as a whole will see more moderate hiring and wage growth in 2024.”
By US region, private employers in the Northwest had the biggest job gains in November, at 59,000, followed closely by the South, which added 58,000 in the month. The Midwest added just 2,000 jobs. Meanwhile, 10,000 jobs were lost in the West.
Large firms with 500 or more employees gained 33,000 jobs overall, whereas medium-sized companies with 50 to 499 employees added 68,000 jobs. Small businesses with one to 49 employees expanded by 6,000 jobs.
Pay gains slow
Pay growth slowed in November for both job-stayers and job-changers. Job-stayers saw a 5.6% pay increase in November, which is the the slowest pace of gains since September of 2021. Meanwhile, job-changers posted pay gains of 8.3%, the smallest year-over-year increase since June of 2021.
Small firms with one to 19 employees saw the smallest median change in annual pay, at 4.8%. The change was 5.7% for firms with 20 to 49 employees, 5.8% for firms with 50 to 249 employees, 5.7% for firms with 250 to 499 employees and 5.6% at firms with 500 or more employees.
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