WASHINGTON: U.S. private payrolls increased less than expected in November as soaring new COVID-19 infections led to a wave of business restrictions, adding to signs of slowing economic activity as a turbulent year winds down.
"The rapid spread of the virus across the nation is making it harder to find employment this fall and this puts the entire economic recovery from recession in jeopardy if Congress can't get it together and vote on a new stimulus package before the end of the year," said Chris Rupkey, chief economist at MUFG in New York.
The resurgence in coronavirus infections and expiring fiscal stimulus are hampering consumer spending and production at factories. More than US$3 trillion in government COVID-19 relief helped millions of unemployed Americans cover daily expenses and companies keep workers on payrolls, leading to record economic growth in the third quarter.
The ADP report was released ahead of the government's closely watched, and comprehensive, monthly employment report on Friday. According to a Reuters survey of economists, private nonfarm payrolls likely increased by 589,000 jobs in November after rising 906,000 in October. Authorities across the country have imposed new restrictions on businesses and other places where crowds congregate. While the measures are not as tough as in March when the coronavirus pandemic started in the United States, they have had a chilling effect on the labor market.
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