Hiring slows sharply as interest rates rise
- Private-sector adds just 113,000 jobs in November
- Sign of softening labor market
- Hiring slowed sharply toward the end of 2023
- ADP payroll estimate not an accurate predictor of government’s official employment report
- Jobs market has lost some of its sizzle this year
- Higher interest rates have slowed the economy
- Businesses are not hiring as many workers
- Unemployment rate remains low at 3.9%
- Economy could avoid recession if unemployment stays low
Businesses added just 113,000 new jobs in November, according to paycheck company ADP. This is a sign of slower hiring and a softer U.S. labor market. While the ADP payroll estimate is not an accurate predictor of the government’s official employment report, both surveys indicate a deterioration in the labor market. The jobs market has lost some of its momentum this year due to higher interest rates, which have slowed the economy. Businesses are not hiring as many workers and are trying to limit pay increases. Despite this, the labor market remains relatively strong with a low unemployment rate of 3.9%. If unemployment stays low, the economy could avoid a recession that typically follows interest-rate increases.
Factuality Level: 7
Factuality Justification: The article provides information about the number of new jobs added in November and compares it to economists’ forecasts. It also mentions that the ADP payroll estimate is not an accurate predictor of the government’s official employment report. The article includes some background information about the state of the jobs market and the impact of higher interest rates. Overall, the article provides factual information but lacks in-depth analysis or additional sources to support the claims made.
Noise Level: 3
Noise Justification: The article provides some relevant information about the ADP report and its implications for the labor market. However, it lacks depth and analysis, and there is a significant amount of filler content, such as the mention of text-to-speech technology and the request for feedback. The article also does not provide any evidence or data to support its claims about the impact of higher interest rates on the economy.
Financial Relevance: Yes
Financial Markets Impacted: The article provides information on the state of the U.S. labor market, which can have implications for financial markets and companies.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The article discusses the slower hiring and softer U.S. labor market, which can impact financial markets and companies.
Public Companies: ADP (ADP), Wall Street Journal (N/A), Federal Reserve (N/A), Dow Jones Industrial Average (DJIA), S&P 500 (SPX)
Key People:
Reported publicly:
www.marketwatch.com 
