U.S. private sector adds 146,000 jobs in November

ROSELAND, N.J. - The U.S. private sector saw an increase of 146,000 jobs in November, while annual pay rose 4.8 percent compared to the previous year, according to the ADP® National Employment Report™, a collaborative effort between ADP Research and the Stanford Digital Economy Lab. The report, produced by ADP (NYSE: ADP), a prominent player in the Professional Services industry with annual revenue of $19.5 billion, is based on anonymized payroll data from over 25 million U.S. employees. According to InvestingPro, ADP maintains consistently low price volatility and has shown solid revenue growth of 6.6% over the last twelve months.

Large businesses were the primary drivers of employment growth this month, contributing 120,000 jobs to the overall increase. On the other hand, small businesses experienced a decline, particularly those with 20-49 employees, which shed 29,000 jobs. Medium-sized businesses added 42,000 jobs. For investors following ADP's performance, InvestingPro reveals over 15 additional exclusive insights about the company's financial health and market position, available through their comprehensive Pro Research Report.

The service-providing sector was responsible for the bulk of the new positions, adding 140,000 jobs, while the goods-producing sector added a modest 6,000 jobs. Notably, manufacturing saw a significant decrease, losing 26,000 jobs, marking the weakest performance for the sector since the spring.

Regionally, job gains were led by the South and Northeast, with the South Atlantic states showing notable growth. However, both the New England and East South Central regions experienced job losses.

Pay insights from the report indicate that year-over-year wage growth for job-stayers edged up to 4.8 percent, marking the first rise in 25 months. Job-changers saw an even larger increase in pay gains, at 7.2 percent.

The report also provided a revision of the October job figures, lowering the initially reported 233,000 jobs added down to 184,000. This adjustment was informed by the latest Quarterly Census of Employment and Wages data.

The next ADP National Employment Report is scheduled for release on January 8, 2025. The data presented in the report offers a near real-time view of the U.S. employment landscape and is distributed monthly, free of charge, as part of ADP's commitment to providing valuable labor market insights.

This news article is based on a press release statement from ADP, Inc. The company currently trades near its 52-week high of $309.63, with InvestingPro analysis indicating the stock is trading above its Fair Value. Investors can access detailed valuation metrics and comprehensive analysis through InvestingPro's extensive financial toolkit.

In other recent news, Automatic Data Processing Inc. (NASDAQ:ADP) has reported a robust first-quarter performance, showcasing a 7% increase in revenue and a 12% rise in earnings per share (EPS), surpassing market expectations. This strong performance is attributed to the successful acquisition of WorkForce Software (ETR:SOWGn) and solid results in the Employer Services and Professional Employer Organization segments. Furthermore, ADP has raised its annual dividend rate, marking its 50th consecutive year of dividend growth, a milestone that places the company among the prestigious 'Dividend Kings'.

Analysts from TD Cowen, Stifel, and RBC Capital have maintained their Hold and Sector Perform ratings on ADP shares, while raising their price targets, reflecting the company's consistent performance and robust bookings. ADP has updated its revenue growth projection for fiscal year 2025 to 6-7%, an increase of approximately $200 million, attributed to the WorkForce Software acquisition and strong first-quarter results. However, the expected improvement in EBIT margin has been revised downward from an increase of 60-80 basis points year-over-year to 30-50 basis points, accounting for around $50 million in acquisition-related headwinds.

In terms of executive changes, John C. Ayala, the current Chief Operating Officer, is set to leave his role, and Joseph DeSilva, currently President of Global Sales at ADP, will step into the role of Executive Vice President, North America and Chief of Operations. Lastly, ADP has introduced ADP Lyric, a new global human capital management platform. These are recent developments shaping ADP's business operations and future trajectory.

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