U.S. lost 32,000 private-sector jobs last month in surprise drop, ADP data shows

Private-sector employers in the U.S. cut 32,000 jobs in November, payroll firm ADP said Wednesday, a surprise drop that could firm up expectations of an interest rate cut next week.

Forecasts had predicted a rise in employment last month, with economists polled by FactSet expecting private employers to add more than 40,000 jobs.

"Hiring has been choppy of late as employers weather cautious consumers and an uncertain macroeconomic environment," ADP chief economist Nela Richardson said in a statement.

Small businesses with fewer than 50 employees drove the cuts in November, shedding 120,000 jobs.

"The 31,000 decline in private payrolls reported by ADP was driven by firms with less than 50 employees," Matthew Martin, senior U.S. economist at Oxford Economics, said in a report. "Small firm