ADP Data Record Below Expectations! Is This Early Point To NFP Data?

<p>&nbsp;Job creation in the private sector slowed in November and wages showed the smallest growth in more than two years, according to a payroll processing report from ADP reported on Wednesday.</p><p><br /></p><p>Companies were only able to add 103,000 workers for the month, slightly below the revised 106,000 data in October and above the Dow Jones estimate of 128,000.</p><p><br /></p><p>Along with modest job growth, there was an annual wage increase of 5.6%, which ADP said was the smallest increase since June 2021.</p><p><br /></p><p>The trade, transportation, and utilities sectors saw an addition of 55,000 positions, while education and health services added 44,000 and other services contributed 15,000.</p><p><br /></p><p><br /></p><p>Service-related industries accounted for the largest job growth for the month, while goods producers saw a net loss of 14,000 due to a 15,000 decline in manufacturing. Recent job cuts in Silicon Valley and on Wall Street were also not seen in this data, as both sectors posted gains during the month.</p><p><br /></p><p>On the other hand, companies with the number of employees between 50 and 499 people were the biggest contributors with an addition of 68,000. Small businesses contributed only 6,000.</p><p><br /></p><p>The ADP report comes out two days ahead of the broader NFP key data. The two reports could differ, though October's private-sector employment numbers were nearly identical when the Labor Department reported growth of 99,000, just 4,000 below the ADP recount.</p><p><br /></p><p>Including government jobs, NFP data rose by 150,000 in October and is expected to show growth of 190,000 in November, according to Dow Jones.</p>