Small businesses are starting to crack amid a weakening economy, rising costs and fickle consumers; and they drove job losses in the US private sector in November, payroll giant ADP reported Wednesday.

U.S. employers have laid off the highest number of workers since the pandemic weakened the global economy.

Weakening job growth could lock in an interest rate cut by the Federal Reserve next week, according to economists.

California employers announced 173,022 job cuts in the first 11 months of this year, up nearly 14% from the same period last year, according to data from outplacement firm Challenger, Gray & Christmas.

US companies shed payrolls in November by the most since early 2023, adding to concerns about a more pronounced weakening in the labor market. Private-sector payrolls fell by 32,000 according ADP data on Wednesday.