Key Takeaways
The U.S. economy is losing jobs at the fastest pace since the pandemic, according to a pair of private-sector reports on the labor market released Thursday.
The reports from Challenger, Gray & Christmas and Revelio Labs highlighted concerns that the job market is slowing down if not shrinking outright.

With government data on the job market for November still weeks away, a pair of private reports show pink slips are flying faster while job offers are slowing down.

U.S. employers shed 9,000 jobs in November, according to a job market report by Revelio Labs, an analytics company that tracks job gains and losses using data from online professional profiles. That was better than the 15,500 lost in October, but it was the fifth month out of the last seven that job growth has been in the red.

A separate report from consulting firm Challenger, Gray & Christmas showed employers announced 71,321 job cuts in November, up from 57,727 in the same time last year. However, it is down from the surge of 153,074 in October.

The data from private-sector firms provide a snapshot of the job market’s health in the absence of official reports, which were delayed by the government shutdown. The official job market report from the Bureau of Labor Statistics for October was canceled, and the November report, previously scheduled to be released on Friday, was delayed until Dec. 16.

What This Means For The Economy

The private sector reports are the latest in a series of red flags about the health of the job market, although they’re not as definitive as official data that will be released later this month.

The reports were the latest in a series of indicators showing that the job market is slowing down, on the heels of a report on Wednesday from payroll provider ADP, which showed that private employers shed 32,000 jobs in November.

Economists have said tariffs and the uncertainty surrounding them are a significant factor in the job market slowdown. Employers have put expansion plans on ice amid uncertainty about trade policy, and consumers are tightening their belts because of higher prices.

“Tariffs have raised production costs and inflation expectations, causing consumers to be more cautious with their spending,” Tom Campbell, an economist at Moody’s Analytics, wrote in a commentary.

The reports reinforced concerns that the job market is faltering outside of the education and health care sector, which continues to expand. The most significant job losses in the Revelio report came in the retail trade and manufacturing sectors.

The 1,170,821 job cuts tracked by Challenger to date this year are the highest since the pandemic hit in 2020, while the 497,151 hiring announcements are the fewest since the end of the Great Recession in 2010.

To be sure, economists generally consider private reports less reliable than the official data, which is based on massive surveys, and are waiting on numbers from the statistical agencies to provide a more definitive picture. A separate report from the Department of Labor on Thursday seemingly contradicted the gloomy picture painted by ADP, Challenger, and Revelio, as unemployment claims fell to their lowest in 2022 last week.

However, the drop in unemployment claims could be just a statistical blip caused by the holidays.

“This doesn’t tell us much about the labor market,” Heather Long, chief economist at Navy Federal Credit Union, wrote in a commentary. “It simply tells us Americans put their job searches and unemployment claims on hold over the late holiday this year.”

While not definitive, the private-sector data provides officials at the Federal Reserve with more reason to cut interest rates in hopes of preventing a surge in unemployment. The Federal Open Market Committee is widely expected to cut its benchmark interest rate by a quarter-point at its meeting next week, despite concerns that lower borrowing costs could fuel inflation.