Private sector added better-than-expected 42,000 jobs in October, ADP says
Companies in the private sector added 42,000 jobs in October, payroll processing firm ADP said Wednesday.
The figure is above economists’ estimates of a gain of 28,000 jobs. The prior month's payrolls number was revised to a loss of 29,000 from an initially reported loss of 32,000.
"Private employers added jobs in October for the first time since July, but hiring was modest relative to what we reported earlier this year," said Nela Richardson, ADP's chief economist. "Meanwhile, pay growth has been largely flat for more than a year, indicating that shifts in supply and demand are balanced."
Trade, transportation and utilities added 47,000 positions, leading job creation in October. Education and health services added 25,000 jobs, financial activities added 11,000, natural resources and mining contributed 7,000, and construction added 5,000.
On the negative side, information lost 17,000 positions in the month, professional and business services lost 15,000 jobs, and other services lost 14,000.
FED PRESIDENT EXPLAINS VOTE AGAINST INTEREST RATE CUT
Leisure and hospitality lost 5,000 jobs and manufacturing lost 3,000.
Large businesses – those with 500 or more employees – added 74,000 jobs in the month. Businesses with 50 to 499 employees lost 22,000 workers. Establishments with fewer than 50 employees lost 10,000 jobs.
FED CUTS INTEREST RATES FOR SECOND TIME THIS YEAR AMID LABOR MARKET WEAKNESS
Wage growth in September was little changed from last month. People staying in their roles saw their pay climb 4.5% from the prior year, while pay gains for those staying in their jobs grew slightly to 6.7% from 6.6% in September.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
The ADP data is typically released before the Labor Department's nonfarm payrolls report and can differ notably. However, due to the federal government shutdown, the Labor Department said it would halt all economic data releases. This includes initial jobless claims and the October nonfarm payrolls data.
