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ADP: Private sector employment rises 182,000 in October

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ADP:  Private sector employment rises 182,000 in October

Middle market companies add 63,000; jobs growth slows overall.

According to payroll processing giant ADP, US private employment rose by 182,000 in October, beating analysts’ expectations of a 180,000 increase, but considerably lower than September’s increase of 200,000.  Middle market companies added 63,000 jobs, or 35% of the total.  This follows

Goods-producing employment rose by 24,000 jobs in October, representing the best month in this sector since January of this year. The construction industry added 35,000 jobs in October, roughly matching September’s gain. Meanwhile, manufacturing remained in negative territory losing 2,000 jobs in October after shrinking by 17,000 in September.

Manufacturing remained in negative territory losing 2,000 jobs in October after shrinking by 17,000 in September.

Service-providing employment rose by 158,000 jobs in October, down from a downwardly revised 182,000 in September. The report indicates that professional/business services contributed 13,000 jobs in October, less than half the September number. Trade/transportation/utilities grew by 35,000, off slightly from the previous month. The 9,000 new jobs added in financial activities were the fewest in this industry in the last six months.

"Firm size contributions to October employment gains returned to the same pattern we had been seeing for some time prior to September as small businesses rebounded to account for almost half the jobs added,” said Ahu Yildirmaz, VP and head of the ADP Research Institute. “Large companies continue to be negatively impacted by trends such as low oil prices and the strong dollar driving weaker exports. On the other hand, small businesses can benefit from these same trends.”

Mark Zandi, chief economist of Moody’s Analytics, said, “Job growth as measured by the ADP Research Institute is not slowing meaningfully in contrast with the recent slowdown in the government’s data. The economy is creating close to 200,000 jobs per month. Job gains are broad based with energy and manufacturing alone subtracting from the top line. Small businesses, in particular, are contributing to the labor market’s solid performance.”

 

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