ADP: Businesses added just 147000 jobs in October – USA TODAY
Businesses added 147,000Â jobs in October, payroll processor ADP said Wednesday, possibly signaling the government this week will report a third straight month of disappointingÂ employment gains.
Economists surveyed by Bloomberg expected ADP to report 165,000 job gains. They forecast the Labor Department on Friday will record 175,000 new jobs in the public and private sectors in the final employment report before the election.
Although ADP tries to foreshadow Laborâs private-sector total, it has missed by an average 46,000 a month over the past two years, according to High Frequency Economics. For September, ADP was close to the mark, estimating businesses added 154,000 jobs, while Labor counted 167,000.
Average monthly job gains have slowed to 178,000 this year from 229,000 in Â 2015, a downshift many economists anticipated in light of a near-normal 5% unemployment rate thatâs providing employers with fewer qualified candidates.
Some economists and public companies also have cited business uncertainty surrounding the presidential election that has led some firms to defer hiring and investment until the vote provides a clearer view tax and other policies.
The Federal Reserve is likely to scrutinize Laborâs payroll surveys for November and December as it weighs an expected interest rate hike at a mid-December meeting. The Fed has kept its key rate unchanged since lifting in late 2015 for the first time in nine years.
In September, ADP said, small businesses added 34,000 jobs, mid-size ones, 48,000 and large companies, 64,000. .
Professional and business services led the gains, with 69,000. Leisure and hospitality added 38,000, and health care, 34,000. Construction companies cut 15,000 jobs and manufacturers, still coping with the oil downturn and a weak global economy, trimmed 1,000.
ADP Vice President Ahu Yildirmaz said job growth âappears to be shifting from small to large companiesâ because of the lessening impact of the sluggish global economy, which hammered bigger firms earlier in the year. Also, he said, in a tight labor market, âlarge companies often have the resources to attract workers with better pay and benefit packages.â