November Job Market Faces Headwinds as Small Businesses Bear the Brunt
November Job Market Faces Significant Headwinds
The U.S. private sector experienced a notable employment contraction in November, with payroll processor ADP reporting a loss of 32,000 jobs. This decline reflects broader challenges facing the economy as businesses navigate cautious consumer spending and macroeconomic uncertainty. The slowdown marks a continuation of flat job creation throughout the second half of 2025, signaling potential weakness in the labor market.
Small Businesses Bear the Brunt
The employment decline was particularly pronounced among smaller firms. Businesses with 1 to 19 employees shed 46,000 positions, while those with 20 to 49 employees lost 74,000 jobs. This disparity highlights how small enterprises face greater vulnerability during economic slowdowns compared to larger corporations, which added 39,000 positions among those with 500 or more employees.
Sectoral Shifts and Future Outlook
Job losses concentrated in professional services, information technology, and manufacturing sectors, while education and health services showed resilience with 33,000 new positions. Pay growth has declined alongside hiring weakness, suggesting employers are exercising caution about future expansion and compensation increases.
```About the Organizations Mentioned
ADP
Automatic Data Processing, Inc. (ADP) is a global leader in human capital management (HCM) solutions, transforming the way businesses manage payroll, HR, talent, time, tax, and benefits administration. Founded in 1949 by Henry Taub as a manual payroll processing business, ADP has evolved into a technology powerhouse, pioneering innovations that have shaped the modern workplace. Headquartered in Roseland, New Jersey, ADP serves over 1.1 million clients in more than 140 countries, supporting organizations of all sizes—from small businesses to multinational enterprises. ADP operates through two main segments: Employer Services and Professional Employer Organization (PEO). Its Employer Services segment delivers cloud-based platforms like RUN Powered by ADP for small businesses and ADP Workforce Now for mid-sized and large organizations, offering comprehensive HR, payroll, and compliance solutions. The PEO segment, branded as ADP TotalSource, provides HR outsourcing and co-employment services, including benefits administration, risk management, and workforce safety programs. Over its 75-year history, ADP has consistently led the industry in payroll and HR innovation. The company went public in 1961 and has since grown into one of the largest HCM providers worldwide, with fiscal year 2025 revenues reaching $20.6 billion and a workforce of approximately 67,000 employees. ADP is recognized for its strong commitment to diversity and inclusion, earning accolades from DiversityInc and being named to Fortune’s “World’s Most Admired Companies” list for 19 consecutive years. Today, ADP continues to shape the future of work by leveraging advanced technology, data analytics, and strategic guidance to help businesses navigate an ever-changing workforce landscape. Its reputation for reliability, innovation, and exceptional service makes ADP a trusted partner for organizations seeking to empower their people and drive business success.
