ADP: October’s 42,000 jobs quell labor fears for now
Nov. 5 (UPI) — ADP reported Wednesday that jobs growth for October provided better insight after fears of further decline after September’s report.
Some 42,000 jobs were added over the month in companies with at least 250 workers following September’s drop of around 29,000, according to Automatic Data Processing Inc. However, a revision showed 3,000 fewer jobs in September.
“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.
ADP data showed that small business lost around 34,000 employees.
“Meanwhile, pay growth has been largely flat for more than a year, indicating that shifts in supply and demand are balanced,” Richardson said in a release.
Job categories in utility, transpiration and trade gained 47,000, which offset losses in other job areas. In addition, around 26,000 jobs were added in health and education services with 11,000 in finance.
A decline in some 17,000 roles in the area of information services was seen despite the ongoing boom in the artificial intelligence industry.
But the manufacturing sector continues to struggle in the growing aftermath of tax-like tariffs imposed by U.S. President Donald Trump in his bid to revive American manufacturing jobs.
Small business account for three of every four U.S. jobs, according to ADP.
ADP’s chief economist stated the shift away from growth in small business is noteworthy.
“While big companies make headlines, small companies drive hiring,” Richardson told CNBC.
“So to see that weakness at the small company level is still a concern, and I think that’s one of the reasons why the recovery has been so tepid.”
The payroll processing giant reported an average monthly growth of 60,000 jobs a month for the first half of the year, but that figure showed a decline in the year’s second half.
The historic ongoing shutdown by the Republican-controlled federal government resulted in a suspension in data released by the Bureau of Labor Statistics, which typically is at the forefront of detailed job data. In addition, a temporary stop in SNAP benefits is poised to heighten food insecurity in the United States.