Private sector job growth in the U.S. fell well short of economist estimates in the month of November, payroll processor ADP revealed in a report released on Wednesday.
ADP said private sector employment increased by 127,000 jobs in November after surging by an unrevised 239,000 jobs in October. Economists had expected employment to jump by another 200,000 jobs.
“Turning points can be hard to capture in the labor market, but our data suggest that Federal Reserve tightening is having an impact on job creation and pay gains,” said ADP chief economist Nela Richardson.
“In addition, companies are no longer in hyper-replacement mode,” she added. “Fewer people are quitting and the post-pandemic recovery is stabilizing.”