The US ADP report signals a deteriorating labor market, with November employment unexpectedly declining.

On December 3, the US Automatic Data Processing company (ADP) released its employment report on Wednesday, showing that private sector employment unexpectedly declined in November. The revised October data showed an increase of 47,000 jobs, but private sector jobs fell by 32,000 in November. The US Bureau of Labor Statistics will release the highly anticipated November employment report on December 16. The report was originally scheduled for release on December 5, but was delayed due to the recent government shutdown and will include October’s nonfarm employment data. Although ADP data indicates a deterioration in labor market conditions, initial claims for state unemployment benefits still align with the market narrative of “no hiring, no layoffs.” Economists say economic uncertainty caused by tariff policies has brought the labor market to a standstill. In September, the US economy added only 119,000 jobs, and the unemployment rate rose to 4.4%, a four-year high. (Jin10)