ADP Reports 42,000 Private-Sector Jobs Added in October, Surpassing Forecasts
Private firms saw slightly higher than expected jobs increase in the month of October providing an indication of hope that the economy may not be slowing as fast as some people thought in the wake of new data released on Wednesday by ADP.
The number of jobs added by US private payroll growth by 42,000 during the month and bounced back after losing 29,000 jobs in September. This figure was also higher than what was predicted by the Dow Jones forecast, which predicted the creation of 22,000 new jobs. ADP payroll report that the losses in September were actually higher by 3,000 than the previous figures, following an unintentional adjustment.
The bulk of the gains in October was in the transportation, trade, and utilities sector, which added 47,000 positions. Health and education saw gains of 26,000 while the financial industry also witnessed rise, adding 11,000 positions.
But, the overall picture was not rosy across all sectors. Despite the US employment growth driven by artificial technology in the tech world Information sector lost 17,000 positions. Professional and business services declined by 15,000 while other services fell by 13,000. Manufacturing was also down by 3,300 jobs, extending the decline that has been slowing even with measures aimed at increasing domestic production.
The gains in employment were concentrated mainly in larger employers. Employers with more than 250 employees added 76,000 new October jobs data, whereas smaller companies have lost 34,000 jobs. This is significant because small-sized businesses typically are the main source employment in the U.S., ADP's chief economist Nela Richardson explained.
"While big corporations draw the spotlight, US labor market update are the true engine for employment development," Richardson said in an interview with CNBC. "Seeing the continued weakness in this sector is concerning and is one of reasons that the overall recovery has been slow and uneven."
