US Private Payrolls Growth Slows in November

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, as shown in the ADP National Employment Report published on Wednesday.

Economists had forecast private employment to increase by 166,000 positions, following a previously reported gain of 233,000 in October.

The ADP report was released ahead of Friday's comprehensive and closely monitored 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 a minor gain of 12,000 in October.

The unemployment rate is expected 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, lowering the policy rate to the 4.25%-4.50% range.

There are expectations for another two rate cuts by the end of next year, a slower pace than Fed officials had projected in September, although further signs of a significant slowdown in the labor market may lead to more cuts being considered.