Employers added 182,000 jobs in the private sector last month, according to payroll giant ADP, although there were slowdowns in some areas, including professional and business services and among large companies.
Small businesses added approximately 90,000 jobs in October, nearly double the 47,000 gained in September. The total included 50,000 jobs at businesses between one and 19 employees and roughly 41,000 at businesses with between 20 and 49 employees.
Midsize businesses with between 50 and 499 employees gained 63,000 jobs in October, up 50 percent from September.
Large businesses with 500 employees or more added 29,000 jobs in October after adding 101,000 in September. The total included companies with 500 to 999 employees, which added 7,000 jobs in October. Companies with over 1,000 employees gained 22,000 jobs in October, after adding 100,000 in September.
The service sector added 158,000 jobs in October, down from a downwardly revised 182,000 in September. Professional and business services, which include accounting and tax along with other services, contributed 13,000 jobs in October, less than half the September total. The combined trade, transportation and utilities sector grew by 35,000, off slightly from the previous month. The 9,000 new jobs added in financial activities were the fewest in this industry in the past six months. Franchise businesses added 52,500 jobs in October.
Goods-producing employment rose by 24,000 jobs in October, representing the best month in this sector since January of this year. The construction industry added 35,000 jobs in October, roughly matching September's gain. Meanwhile, manufacturing remained in negative territory, losing 2,000 jobs in October after shrinking by 17,000 in September.
“Job growth remained relatively stable in October,” said Sophia Koropeckyj, managing director at Moody’s Analytics, which compiles the monthly national employment report with ADP, during a conference call with reporters Wednesday. “In contrast to most of the year, job growth has strengthened in goods-producing industries as manufacturing losses have abated. Weaker gains in business and professional services in particular are mostly to blame for only 13,000 jobs. Business confidence has been shaken recently by volatility in the financial markets, weaker global conditions and the high dollar. We have bifurcation in the economy between the internationally focused large business and professional companies, while on the other hand domestically focused consumer companies are doing better. Domestic consumer spending is driving solid gains in trade, transportation and utilities.”
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