Economic Watch: Employment Growth Slows

The first indication of job growth for November shows it staying past the 200,000 mark for the seventh out of the past eight months, according to the ADP National Employment Report.

Private sector employment increased by 208,000 jobs in November, down slightly from the upwardly revised 233,000 level hit in October and is the lowest number since August

Payroll management service company ADP, in collaboration with the economic analysis company Moody’s Analytics, produces the report. It was released before federal unemployment figures for November are published on Friday.

Payrolls for businesses with 49 or fewer employees increased by 101,000 jobs in November, down slightly from 103,000 in October, but continue to account for more than half the job gains. Employment among companies with 50 to 499 employees rose by 65,000, well below October’s increase of 122,000.

Employment at large companies, those with 500 or more employees, saw a rebound from 7,000 the previous month to 42,000 jobs added in November. Companies with 500 to 999 employees added 10,000 jobs, down from October’s 14,000. However, this drop was more than offset by the addition of 32,000 jobs by companies with over 1,000 employees.

“Steady as she goes in the job market. Monthly job gains remain consistently over 200,000,” said Mark Zandi, chief economist of Moody’s Analytics. At this pace the unemployment rate will drop by half a percentage point per annum. The tightening in the job market will soon prompt acceleration in wage growth.”