On Tuesday, October 28th, the private enterprise payroll management firm ADP announced that there are signs of recovery in the U.S. labor market in October. Over the four weeks leading up to October 11th, an average of about 14,250 jobs were added each week, indicating that the job market is gradually emerging from its recent economic downturn.
Chief economist of ADP, Nela Richardson, stated in the company’s latest employment report, “The growth in employment positions indicates that the U.S. economy is coming out of the recent low unemployment rate.”
She added, “Although the number of hires has been increasing since September, the growth has been slow and not as robust as earlier in the year.” “However, this mild recovery may support economic growth, as we have seen signs of declining unemployment numbers over the past few weeks.”
Since 2010, ADP has been publishing monthly private enterprise payroll data. Starting this week, ADP will release weekly employment growth estimates between monthly reports to supplement the official statistical data gaps.
Due to the ongoing U.S. government shutdown, ADP data has become a primary reference for investors to understand the current U.S. labor market situation.
ADP employment data shows that in September, U.S. private enterprises cut 32,000 jobs, mainly concentrated in small businesses, with the most severe losses in professional and business services, as well as leisure and hospitality industries. Most hiring occurred in the healthcare industry, the only sector showing sustained job growth this year.
In summary, ADP’s report indicates that the U.S. labor market is gradually recovering from its slump in September, but the pace of recovery is slow. The hiring trends in the coming weeks will be a key indicator in determining whether the economy is truly emerging from the low point.