On Wednesday, November 5th, ADP, a payroll services company, released the October “National Employment Report,” showing that the United States private sector added 42,000 jobs in October, marking the first monthly growth since July and indicating a mild recovery in the labor market.
The so-called “small non-farm” ADP positions increased by 42,000 in October, surpassing the market’s expectations of a 30,000 gain. According to the ADP report, the employment situation in October was mixed, with the professional and business services sector shedding 15,000 positions, the information industry losing 17,000 positions, while the trade, transportation, and utilities sector added 47,000 jobs and the education and health services sector also saw an increase of 26,000 positions. Overall, small and medium-sized businesses continued to cut jobs, while large enterprises increased hiring.
ADP’s Chief Economist, Nela Richardson, stated, “Private sector job opportunities in October saw growth for the first time since July, but the job additions were more moderate compared to our reports earlier this year. At the same time, wage growth has remained relatively flat for over a year, indicating a balance in supply and demand.”
In September, ADP’s employment data showed employers cutting 32,000 positions, but this latest report on Wednesday revised that figure to a decrease of 29,000 jobs. Similar declines were seen in the August employment data, albeit on a smaller scale.
As the U.S. government is still in a shutdown state, official employment statistics are absent. Economists and analysts have had to rely on alternative data sources available to them. The release of this ADP report fills the gap left by the official employment statistics.
The official employment report for September has already been delayed by over a month, and the October report, originally scheduled for release this Friday, is expected to be further postponed.
Last week, ADP announced that they would be releasing weekly estimates of new job opportunities. The preliminary data indicates a “mild rebound” in private sector employment in October, but a full recovery is still some distance away.