Economists polled by Reuters were predicting the addition of 165,000 private-sector jobs in October. This morning’s report from payroll processor ADP came in below those expectations at 147,000 jobs. However, last month’s report was revised upward to 202,000 jobs from the 154,000 jobs initially reported.
“Job growth remains strong although the pace of growth appears to be slowing,” said Mark Zandi, chief economist of Moody’s Analytics, which produces the report with ADP. “Behind the slowdown is businesses’ difficulty filling open positions. However, there is some weakness in construction, education and mining.”
Construction shed 15,000 jobs last month, while mining and manufacturing lost 2,000 and 1,000 jobs each. Goods-producing employment as a whole was down 18,000 jobs.
Service-providing employment increased by 165,000 jobs in October, concentrating in professional and business services (+69,000 jobs), leisure and hospitality (+38,000 jobs), healthcare and social assistance (+34,000 jobs), financial activities (+18,000 jobs), and trade/transportation/utilities (+17,000 jobs). Education shed 12,000 jobs.
Big Businesses Adding Jobs Once More
“Job growth appears to be shifting from small to large companies due to the lessening impact the global economic environment had on large companies earlier in the year,” said Ahu Yildirmaz, vice president and head of the ADP Research Institute. “This is also true because large companies often have the resources to attract workers with better pay and benefit packages.”
Large businesses with 500 or more employees added 64,000 jobs, while medium-sized businesses with between 50 and 499 employees added 48,000 jobs, and small businesses with fewer than 50 employees added 34,000 jobs.
On Friday, all eyes will be on the report from the Labor Department — the last jobs report before the U.S. presidential election on Nov. 8. The report, which includes all non-farm employment, is expected to reflect the addition of 175,000 jobs to public and private payrolls, and an unemployment rate of 4.9 percent. The PayScale Index, which measures the wages of employed U.S. workers, forecasts 1 percent year-over-year growth for Q4 2016.
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