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Small Businesses Shed 120,000 Jobs in November
5 Dec
Summary
- Private sector lost 32,000 jobs in November, defying expectations.
- Small businesses bore the brunt, shedding 120,000 positions.
- Wage growth also decelerated, indicating a cooling labor market.
November saw a downturn in the U.S. private sector employment, with a reported loss of 32,000 jobs. This figure fell short of economists' expectations for a modest gain, highlighting a cautious hiring environment fueled by uncertain economic conditions and hesitant consumers. The decline was notably led by a significant pullback among small businesses.
Small businesses, defined as those with fewer than 50 employees, experienced the most substantial losses, shedding 120,000 jobs. In contrast, larger businesses, particularly those with 50 to 499 employees, continued to add workers. This disparity suggests that smaller enterprises are facing greater challenges in the current economic climate.
Further indicating a cooling labor market, wage growth slowed in November. Employees who remained in their roles saw pay increases of 4.4%, down from 4.5%, while those who switched jobs experienced a deceleration to 6.3% from 6.7%. Experts suggest this 'start-to-fire' job market may persist into the first half of 2026.
