NEW YORK ( TheStreet) -- Private-sector employment rose by the most in three years in November, according to the latest ADP National Employment Report. On a seasonally adjusted basis, private businesses added 93,000 jobs in November. The growth in private payrolls came in significantly higher than expected, with economists forecasting a jump of 58,000, according to consensus estimates from Briefing.com. Employment in the services sector rose for the tenth consecutive month by 79,000 in November. Employment in goods-producing and manufacturing sector rose by 14,000 and 16,000 respectively after declining last month. The construction sector shed 3,000 jobs, its smallest decline since June 2007. Interestingly, the growth in payrolls was driven by small-businesses. Large businesses, defined as those with 500 or more workers, increased by 2,000 while employment among medium-size businesses, defined as those with between 50 and 499 workers, increased by 37,000. Employment among small-size businesses, defined as those with fewer than 50 workers, increased by 54,000. In another report released on Wednesday, global outplacement firm Challenger Gray & Christmas said downsizing activity rose to an eight-month high, as government and nonprofit organizations shed jobs. Employers announced job cuts totaling 48,711 during the month, according to the report, 28% higher than those planned in the previous month, but still 3.3% lower than year-ago levels. However, John Challenger, CEO of the consulting firm, said that most sectors outside of government have seen declines in job cuts. "The November increase in job cuts is not indicative of a broader trend. Historically, job cuts tend to increase in the final months of the year. This is the period when many companies make budget and payroll decisions for the coming year," said Challenger. The ADP number comes ahead of the government's report of nonfarm payrolls on Friday. The Labor Department is expected to report on Friday that companies added 140,000 jobs in November, according to consensus estimates from Briefing.com. On Thursday, the Labor Department will also release its weekly unemployment claims report. Initial weekly claims is expected to rise by 15,000 to 422,000 in the week ended Nov.27
after unexpectedly dropping to 407,000 in the previous week, its lowest level since July 2008.
The Federal Reserve Chairman Ben Bernanke said Tuesday that growth in the economy was not fast enough to materially improve employment. Speaking at a meeting with business leaders in Ohio, Bernanke said the prolonged periods of unemployment was worrying. On Tuesday, Novartis ( NVS) and State Street ( STT) both announced job cuts of 1,400 each, even as Chrysler and General Motors ( GM) said they will add jobs. Stocks were rising in premarket trading. The SPDR Dow Jones Industrial Average ETF ( DIA) and the SPDR S&P 500 ETF ( SPY) were up1.1% each. -- Written by Shanthi Bharatwaj in New York >To contact the writer of this article, click here: Shanthi Bharatwaj. >To follow the writer on Twitter, go to http://twitter.com/shavenk. >To submit a news tip, send an email to: firstname.lastname@example.org.