U.S. hiring revs up as non-public sector provides 571,000 new jobs in October, ADP finds
The payment: An ADP poll found that privately owned U.S. companies created a pretty healthy 571,000 new jobs in October, a sign that companies are still finding work despite the largest labor shortage in decades.
The increase in staff was stronger than expected. Economists polled by the Wall Street Journal had forecast an increase of 395,000.
ADP sometimes serves as a preview for the US Department of Labor’s larger employment survey released a few days later. Still, the two reports were often at odds during the pandemic and ADP was less reliable as a guide.
The September private sector job increase has meanwhile been revised down from 568,000 to 523,000.
Read: US inflation at its highest level in 30 years
Big picture: The pace of hiring is still too slow to fully meet business needs and keep the economy going. More than 10 million job vacancies are available and a labor shortage has prevented many companies from producing enough goods and services to meet demand.
There is hope that more people will be withdrawn into the labor market due to a subsiding pandemic, the end of emergency benefits and rising wages.
But so far there is hardly any evidence of this. The proportion of employed or job seekers is at its lowest level since the late 1970s.
Key data: The strongest increase in personnel was again in the leisure and hospitality industry. These companies created 185,000 jobs.
Falling coronavirus cases related to the highly contagious Delta variant have given Americans the confidence to go back outside and spend more freely in restaurants, hotels, and the like.
Attitudes were also robust in transportation, construction, manufacturing, and professional professions.
The pioneers were large companies with around 342,000 employees. Medium-sized businesses created 114,000 jobs and small businesses created 115,000 jobs.
The US Department of Labor is expected to report on Friday that the economy created 450,000 new jobs in October, economists predict. These numbers include employment in local, state, and federal agencies.
Economists say two more than 500,000 readings in ADP’s employment could be a sign that the Department of Labor’s report will be stronger as well.
What do you say? “The job market is picking up again as the delta wave of the pandemic subsides,” said Mark Zandi, chief economist at Moody’s Analytics, whose firm helped develop the ADP report.
“Job growth is accelerating across all industries, especially large companies,” he added. “As long as the pandemic remains contained, further large job increases are likely to be expected in the coming months.”
Market reaction: US stocks DJIA, + 0.39% SPX, + 0.37% should open lower in Wednesday’s trades but remain near record highs.