US companies added 307,000 jobs in November, fewer than economist forecasts, ADP says

US companies added 307,000 jobs in November, fewer than economist forecasts, ADP says
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  • The US added 307,000 private payrolls in November, according to ADP's monthly employment report.
  • The reading lands below the median economist estimate of 440,000 payrolls, according to Bloomberg data.
  • The report precedes the US Bureau of Labor Statistics' monthly nonfarm payrolls report set for Friday release. November data is expected to show continued gains through the month, albeit at a slower pace.

US business hiring slowed in November as rising COVID-19 cases and fresh economic restrictions curbed job growth.

The nation's private sector added 307,000people to payrolls last month, according to the ADP monthly employment report published Wednesday. Economists surveyed by Bloomberg expected 440,000 new payrolls. The reading also landed below the revised 404,000 reading for October.

"While November saw employment gains, the pace continues to slow," Ahu Yildirmaz, vice president and co-head of the ADP Research Institute, said. "Job growth remained positive across all industries and sizes."

The monthly payrolls data precedes the Bureau of Labor Statistics' nonfarm payrolls report, which is slated to be published on Friday. Economists expect the unemployment rate to fall to 6.8%, from 6.9%, and for November payroll additions to total 486,000.

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ADP's data joins several other indicators detailing a moderating economic recovery. Weekly filings for unemployment benefits rose to 778,000 for the week that ended November 21, marking the first back-to-back jump in claims since July. Economists expected filings to land at 730,000 that week.

Outside the labor market, the University of Michigan's gauge of consumer sentiments fell to its lowest point since August last month. The index sank to 76.9 from 81.8, largely dragged lower by worsening expectations for economic growth. President-elect Joe Biden's victory also pulled Republicans' outlooks to their lowest levels since President Donald Trump was elected.

The slowing rebound comes as COVID-19 cases continue to shoot higher across the country. The US reported 176,751 new cases on Tuesday, according to The COVID Tracking Project. Hospitalizations neared 99,000, and deaths rose above 260,000. State and local governments are mulling increasingly strict lockdown measures to slow the virus's spread, risking more difficult hiring conditions through the end of the year.

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