Following 2 months of improving growth and beats after a mid-year slump, ADP Employment in November dropped to 208k (from an upward revised 233k in Oct even as September was revised lower from 225K to 213K) missing expectations of 222k by the most since August. November has historically seen a significant bump higher in employment but 2014 saw a drop (the first since 2008) with the lowest November print since 2010.
ADP job growth slipped and missed:
Worst November since 2010, first drop in November since 2008
Some more charts:
Monthly change in ADP payroll:
ADP vs BLS:
Employment by Company Size
Employment by Selected Industry
From the report:
Payrolls for businesses with 49 or fewer employees increased by 101,000 jobs in November, down slightly from 103,000 in October. Job growth was down significantly over the month for medium-sized firms. Employment among companies with 50-499 employees rose by 65,000, well below October's increase of 122,000. Employment at large companies – those with 500 or more employees – saw a rebound from 7,000 the previous month to 42,000 jobs added in November. Companies with 500-999 employees added 10,000 jobs, down from October's 14,000. However, this drop was more than offset by the addition of 32,000 jobs by companies with over 1,000 employees.
Goods-producing employment rose by 32,000 jobs in November, down from 46,000 jobs gained in October. The construction industry added 17,000 jobs over the month, well below last month's gain of 27,000. Meanwhile, manufacturing added 11,000 jobs in November, down slightly from October's 13,000.
Service-providing employment rose by 176,000 jobs in November, down from 187,000 in October. The ADP National Employment Report indicates that professional/business services contributed 37,000 jobs in November. Expansion in trade/transportation/utilities grew by 49,000, just above October's 48,000. The 5,000 new jobs added in financial activities was below last month's 6,000.
“November continued to show solid job growth above 200,000,” said Carlos Rodriguez, president and chief executive officer of ADP. “Small businesses continued to drive job gains adding almost half the total for the month.”
