US Jobs Plunge: Small Businesses Hit Hard, Bitcoin Surges

US private-sector jobs fell by 32,000 in November, led by small businesses cutting 120,000 jobs. The weak data boosts expectations of a Fed rate cut, sparking rallies in equities and Bitcoin.

The latest ADP Employment Report revealed a significant downturn in the U.S. private-sector labor market for November, with payrolls falling by 32,000 jobs, marking the sharpest decline since early 2023. The contraction was driven primarily by small businesses, which shed 120,000 jobs, while larger firms added 90,000 positions. This unexpected drop contrasts with economists’ forecasts of a 40,000-job gain and follows a revised increase of 47,000 jobs in October. The slowdown was broad-based but most pronounced among smaller firms, reflecting pressures from softer consumer demand and an uncertain economic environment. The weak jobs data has increased expectations that the Federal Reserve will cut interest rates at its upcoming December meeting, with futures markets pricing in a high probability of a 0.25% reduction. Financial markets responded positively to the prospect of lower rates, with equities and cryptocurrencies, including Bitcoin, rallying after the report. Bitcoin traded above $93,000, posting daily and weekly gains, as investors anticipated a more accommodative monetary policy.