ADP said that manufacturing employment edged lower in October, with hiring in the sector down in eight of the ten months so far this year. In October, there were 1,000 fewer workers on net for manufacturers, which continue to be challenged by global headwinds and economic anxieties. Overall, employment in the sector is down by 38,000 year-to-date. This suggests that manufacturers remain wary about adding to their workforce, particularly with sluggish growth in demand and production. Yet, job openings have been more favorable of late, which could indicate better hiring growth moving forward when manufacturers become less cautious.
Meanwhile, nonfarm payroll employment rose by 147,000 in October, its slowest pace in five months and below the consensus estimate of 165,000. The year-to-date average is currently 175,000, down from the average pace of 209,000 per month seen in all of 2015. In September, goods-producing employment was lower across-the-board, including construction (down 15,000), mining (down 2,000) and manufacturing (down 1,000). The largest job gains were in professional and business services (up 69,000), trade, transportation and utilities (up 17,000), education and health services (up 22,000) and financial activities (up 18,000).
Small and medium-sized businesses (e.g., those with less than 500 employees) accounted for more than 55.8 percent of all net new workers in the month.
On Friday, we will get new jobs data from the Bureau of Labor Statistics (BLS) for October, and the consensus estimate is for around 170,000 new nonfarm payroll jobs for the month. Manufacturing employment is expected to remain soft, hopefully near zero or with a slight increase.