The latest report of US private sector wages rose much less than expected in November, showing demand for labor is slowing amid high interest rates, a survey showed on Wednesday.
Private employment increased by 127,000 jobs in November, the ADP National Employment Service reported. Unrevised data for October showed 239,000 jobs were created. Economists polled by Reuters even forecast private employment to rise by 200,000.
The ADP report, developed in conjunction with the Stanford Digital Economy Lab, from the Labor Department was released ahead of a more comprehensive report on Friday.
According to a Reuters survey of economists, private payrolls may have risen by 200,000 jobs in November after rising by 233,000 in October. With no increase in employment expected in the government sector, the NFP reading is also forecast to increase by 200,000 jobs. The economy had previously created 261,000 jobs in October.
Job growth is gradually slowing as the Federal Reserve's aggressive interest rate hikes slow demand in the economy. Nevertheless, the demand for labor continues to increase.
The Fed has raised its policy rate by 375 basis points this year from near zero to a range of 3.75%-4.00% in what has been the fastest rate-hiking cycle since the 1980s.
