U.S. private payrolls fall in November as small businesses shed jobs

Thursday, December 4, 2025 -According to the most recent data from payroll firm ADP, U.S. private‑sector employers cut 32,000 jobs in November — a surprising turn given expectations for job growth.

The decline was driven overwhelmingly by small businesses. Firms with fewer than 50 employees shed about 120,000 jobs, including a steep drop among companies with 20–49 workers. Larger firms, by contrast, added around 90,000 jobs overall.

Sectors feeling the biggest job losses included professional and business services, information, manufacturing, and construction. By contrast, some industries — such as education, health services, leisure, and hospitality — saw modest job gains, but not enough to offset the overall decline.

Wage growth also cooled slightly: among those who stayed employed, pay rose about 4.4 % year‑over‑year — a bit slower than in previous months.

Analysts say the sharp drop, especially among smaller firms, signals growing fragility in the labor market. Some warn this may foreshadow broader economic weakness if consumer demand and business investment remain soft.