December 05, 2025
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ADP: U.S. private payrolls fall 32,000

ADP reported U.S. private payrolls fell by 32,000 in November, with its three‑month average at −4,700 jobs — a sign of flatlining conditions concentrated at the smallest firms. Broader labor measures show modest cooling (Chicago Fed real‑time unemployment 4.44%, four‑week initial claims ≈215,000, and Bank of America data showing payroll growth slowed to +0.2% year‑over‑year), and BofA economists attribute the weakness more to supply constraints than to a large wave of layoffs.

Federal Reserve Federal Reserve and Interest Rates U.S. Labor Market

📌 Key Facts

  • ADP reported U.S. private payrolls fell 32,000 in November; ADP’s three‑month average change is −4,700 jobs, signaling flatlining conditions concentrated at the smallest firms.
  • Chicago Fed real‑time unemployment estimate held at 4.44% in the latest reading (down from 4.46% in October).
  • Weekly initial jobless claims 4‑week moving average is about 215,000, lower than in spring/summer despite announced layoffs.
  • Bank of America Institute data show payroll growth slowed to +0.2% year‑over‑year in November (from +0.5% in the prior two months), with unemployment‑benefit recipient trends remaining steady.
  • BofA economist David Tinsley told Axios there is no 'great wave' of job losses and suggested supply constraints, including restrictive immigration policy, are a significant factor.

📊 Relevant Data

Immigration has accounted for almost half of U.S. labor force growth since 1995.

How Tighter Curbs on Immigration Impact the U.S. Economy — Econofact

Declining net immigration accounts for 40 to 60 percent of recent drop in U.S. job growth.

Immigration can't explain declining employment growth — Federal Reserve Bank of Minneapolis

In 2024, the foreign born accounted for 19.2 percent of the U.S. civilian labor force.

Labor Force Characteristics of Foreign-born Workers Summary — Bureau of Labor Statistics

In September 2025, the unemployment rate was 3.8% for Whites, 7.5% for Blacks, and 5.5% for Hispanics.

The Employment Situation - September 2025 — Bureau of Labor Statistics

In 2022, the U.S. population was approximately 59% non-Hispanic White, 13% Black, 19% Hispanic, and 6% Asian.

US population by year, race, age, ethnicity, & more — USAFacts

📊 Analysis & Commentary (1)

Vibecession: Much More Than You Wanted To Know
Astralcodexten by Scott Alexander December 04, 2025

"The piece is a long-form, contrarian deep dive arguing that recent negative headlines about the labor market (exemplified by the ADP payrolls drop) are better understood as a 'vibecession' — a mood- and narrative-driven dip — and that we should interpret mixed indicators cautiously rather than treat a single headline as evidence of a structural recession."

📰 Sources (2)

The weak-but-not-disastrous November jobs picture
Axios by Neil Irwin December 05, 2025
New information:
  • Chicago Fed real-time unemployment estimate held at 4.44% in the latest reading (down from 4.46% in October).
  • Weekly initial jobless claims 4-week moving average is about 215,000, lower than in spring/summer despite announced layoffs.
  • Bank of America Institute data show payroll growth slowed to +0.2% year over year in November (from +0.5% in the prior two months), with steady trends in unemployment benefit recipients.
  • ADP’s three-month average change is −4,700 jobs, highlighting flatlining conditions concentrated at the smallest firms.
  • BofA economist David Tinsley told Axios there is no 'great wave' of job losses and suggested supply constraints (including restrictive immigration policy) are a significant factor.
U.S. lost 32,000 private-sector jobs last month in surprise drop
https://www.facebook.com/CBSMoneyWatch/ December 03, 2025