Payroll processor ADP released a report on Wednesday showing private sector employment in the U.S. increased by less than expected in the month of November.

ADP said private sector employment rose by 307,000 jobs in November after climbing by an upwardly revised 404,000 jobs in October.

Economists had expected employment to increase by 410,000 jobs compared to the addition of 365,000 jobs originally reported for the previous month.

"While November saw employment gains, the pace continues to slow," said Ahu Yildirmaz, vice president and co-head of the ADP Research Institute.

The report said employment in the service-providing sector climbed by 276,000 jobs, reflecting notable job growth in the leisure/hospitality and education/health service industries.

Employment in the goods-producing sector also edged up by 31,000 jobs amid modest increases in construction and manufacturing jobs.

ADP also revealed employment at mid-sized businesses increased by 139,000 jobs, while small businesses at 110,000 jobs and employment at large businesses rose by 58,000 jobs.

On Friday, the Labor Department is scheduled to release its more closely watched employment report, which includes both public and private sector jobs.

Economists expect employment to increase by 500,000 jobs in November after jumping by 638,000 jobs in October. The unemployment rate is expected to edge down to 6.8 percent from 6.9 percent.