According to ADP, US private-sector employment rebounded modestly in October, adding 42,000 jobs after two months of declines, signaling some stabilization in the labor market, reports Bloomberg. Job growth was led by trade, transportation, utilities, and education and health services, while sectors like business services, information, and leisure saw losses. Large companies drove the gains, whereas small businesses continued to see declining employment. Wage growth remained largely stagnant, with job changers earning 6.7% more and incumbents 4.5%. Despite the increase, lingering concerns from recent high-profile layoffs and a general softening in labor demand suggest ongoing caution for the economy. Economists note the trend could influence future Federal Reserve interest rate decisions. They write:
Employment at US companies increased in October, signaling some stabilization in the job market after two straight months of declines.
Private-sector payrolls increased by 42,000 after a revised 29,000 decline a month earlier, according to ADP Research data released Wednesday. The median estimate in a Bloomberg survey of economists called for a 30,000 gain.
The ADP report is one of the few monthly snapshots of the labor market as the longest government shutdown in US history delays the releases of official economic data. […]
After the Federal Reserve lowered interest rates last week for a second straight meeting, Chair Jerome Powell said that he sees “very gradual cooling” in the labor market “but nothing more than that.” He made it clear that another reduction at the Fed’s next meeting in December wasn’t certain. […]
In addition to the monthly reports, ADP said last week it will now also release payroll data on a weekly basis. The firm had provided a version of weekly payrolls to the Fed but recently stopped the data-sharing arrangement without explaining why.
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