Earlier this week Automatic Data Processing Inc. (ADP) reported that private sector employment increased by 130,000 private sector jobs in October. That number was 36,000 jobs fewer than reported the previous month. The soft job growth is attributed to the Federal government shutdown. Of the 130,000 jobs that were created in October, small businesses with 1-49 employees added 37,000, followed by medium-sized businesses with 50-499 employees adding 13,000 jobs which was the fewest and large businesses with 500-1000+ employees adding the most jobs in October at 81,000 jobs.
According to the ADP National Employment Report the Service Sector added 107,000 jobs in during the period, while the Goods Producing Sector added 24,000 jobs. While job growth is happening the rate of job growth appears to be more related to replacement of existing positions than real job growth. Confidence in the economy continues to elude the nation which has become compounded by the recent shutdown of the Federal government.
Chief economist, Mark Zandi of Moody's Analytics, said “The government shutdown and debt limit brinkmanship hurt the already softening job market in October. Average monthly growth has fallen below 150,000. Any further weakening would signal rising unemployment. The weaker job growth is evident across most industries and company sizes”.
“According to ADP National Employment Report findings, the U.S. private sector added a total of 130,000 jobs during the month of October, well below the average of the last twelve months”, said Carlos A. Rodriguez, president and executive officer of ADP. “Small business growth was down from the previous month, while payrolls among large enterprises showed an increase”.
The ADP National Employment Report is a monthly report that measures the change in total U.S. non farm private employment collected through anonymous ADP client companies. The ADP National Employment Report measures almost 24 million workers trends. The report is produced by ADP Research Institute in collaboration with Moody's Analytics, Inc. To view the full report can go to ADP National Employment Report.
The next ADP National Employment Report will be released on December 4, 2013 that will cover jobs created in November 2013.
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