ADP said that the U.S. economy added just 130,000 nonfarm payroll workers on net in October, down from 145,000 in September. The slower pace of job creation was expected given the government shutdown. Yet, it is also true that hiring has been decelerating since 190,000 workers were added in June.
Manufacturers hired an additional net new 5,000 workers in October, rebounding from a revised loss of 1,000 employees in September. (It had originally been reported as a gain of 1,000 workers.) In general, the sector continues to be hesitant to bring on new staff, with employment growth subpar for much of the past year.
Small and medium-sized businesses (e.g., those with less than 500 employees) somewhat struggled to add new workers in October, contributing just 38 percent of all of the net new jobs in the month. In past reports, these entities contributed a majority of the net gains. Sectors with the greatest increases in employment for the month included trade, transportation and utilities (up 40,000), professional and business services (up 20,000), and construction (up 14,000). Financial activities shed 5,000 workers, with reduced mortgage activity the most likely reason.
These findings should be similar to the official government ones, which will now be released one week later on November 8 due to the budget impasse.
Latest posts by Chad Moutray (see all)
- Kansas City Fed: Manufacturing Activity Expanded in February at Fastest Rate since June 2011 - February 23, 2017
- Existing Home Sales Jump to their Fastest Rate in Nearly 10 Years - February 22, 2017
- Markit: Eurozone Manufacturing Activity Rose at Fastest Rate since April 2011 - February 21, 2017