ADP: October Private-Sector Employment Up 239,000; Pay Up 7.7%
In the second of four major jobs reports this week, ADP, Roseland, N.J., said private-sector employment in October increased by 239,000 jobs, while annual wages jumped by 7.7 percent.
The ADP National Employment Report said by comparison, private-sector employment increased by 192,000 in September. The report said restaurants, retailers and the travel sector ramped up hiring in advance of the year-end holidays.
“This is a really strong number given the maturity of the economic recovery but the hiring was not broad-based,” said Nela Richardson, chief economist with ADP. “Goods producers, which are sensitive to interest rates, are pulling back, and job changers are commanding smaller pay gains. While we’re seeing early signs of Fed-driven demand destruction, it’s affecting only certain sectors of the labor market.”
The report said by industry, goods-producing employers lost 8,000 jobs in October, while service-providing employers added 247,000 jobs. By size, small employers (1-49 employees) added 25,000 jobs; medium-sized employers (50-499 employees) added 218,000 jobs; and large employers lost 4,000 jobs.
ADP also reported despite a 7.7 annual increase in job pay in October for people who remained in their jobs, the rate decreased for the third straight month. Additionally, job-changers saw an annual increase of 15.2 percent in October, down from 15.7 percent in September.
The job reports parade continues this morning when the Labor Department releases its weekly Initial Claims report (8:30 a.m. ET). On Friday, the Bureau of Labor Statistics releases its monthly Employment Situation report on October jobs. Mortgage Bankers Association Chief Economist Mike Fratantoni will provide commentary and analysis in the Monday, Nov. 7 edition of MBA NewsLink.
On Tuesday, BLS released its monthly Job Openings and Labor Turnover Survey (JOLTS), showing Job openings in September jumped by more than a half-million from August. BLS reported 1.9 job openings for every available U.S. worker.
