The U.S. labor market showed fresh signs of cooling in November as ADP private payrolls fell by 32,000, the sharpest decline since March 2023 and far below economists’ expectations. Analysts had forecast a gain of 5,000 jobs, following an increase of 42,000 in October.

The unexpected drop in employment triggered immediate reactions in financial markets. Spot gold prices edged higher, supported by expectations of looser monetary conditions if labor market weakness persists. The U.S. dollar index extended its decline, reflecting market bets on a softer economic outlook.

U.S. Treasury markets also responded sharply: the two-year Treasury yield fell further as investors priced in increased chances of earlier or deeper interest-rate cuts from the Federal Reserve.

The ADP data will be closely watched ahead of the official U.S. nonfarm payrolls report, as investors seek clearer signals on whether the labor market’s deceleration could shift the Fed’s policy trajectory heading into 2026.