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US private payrolls growth slowed in November

Published 2024-12-04, 08:40 a/m
© Reuters

Investing.com - US private payrolls growth slowed in November, raising hopes of another interest rate cut by the Federal Reserve later this month.

Private payrolls rose by 146,000 jobs last month, after advancing by a downwardly revised 184,000 in October, the ADP (NASDAQ:ADP) National Employment Report showed on Wednesday.

Economists had forecast private employment increasing by 166,000 positions after a previously reported gain of 233,000 in October.

The ADP report was published ahead of Friday's more comprehensive and closely watched employment report for October from the Labor Department's Bureau of Labor Statistics.

Nonfarm payrolls are estimated to have increased by 202,000 jobs last month after advancing a marginal 12,000 in October.

The unemployment rate is forecast to rise to 4.2%, up from 4.1% the previous month.

Financial markets are pricing in about a 70% chance of a quarter-of-a-percentage point interest-rate cut by the Federal Reserve this month, which would bring the policy rate to the 4.25%-4.50% range. 

They are betting on another two rate cuts by the end of next year, a slower pace than Fed officials had projected in September, but further signs of a dramatic slowdown in the labor market cut result in further cuts being factored in.

 

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