Private sector added 125,000 jobs in October, says ADP
Private sector employers added 125,000 jobs in October, according to payroll giant ADP, as the fading impact of last year’s tax cuts cooled the pace of job growth.
Small businesses added a total of 17,000 jobs, although the smallest businesses of between one and 19 employees actually subtracted 12,000 jobs, which was counterbalanced by the 30,000 jobs added by small businesses with between 20 and 49 employees.
Midsized businesses with between 50 and 499 employees gained 64,000 jobs in October. Large businesses added 44,000 employees, including 10,000 jobs at companies with between 500 and 999 employees, and 33,000 at companies with 1,000 employees or more.
The service-providing sector added 138,000 jobs in October, including 18,000 in professional and business services and 17,000 in financial activities. The goods-producing sector, however, lost 13,000 jobs, including 4,000 each in the construction, manufacturing and natural resources/mining industries.
"While job growth continues to soften, there are certain segments of the labor market that remain strong," said Ahu Yildirmaz, vice president and co-head of the ADP Research Institute, in a statement. "The goods producing sector showed weakness; however, the healthcare industry and midsized companies had solid gains."
Mark Zandi, chief economist of Moody's Analytics, which compiles the monthly national employment report with ADP, noted that job growth has throttled back significantly over the past year. “The job slowdown is most pronounced at manufacturers and small companies,” he stated. “If hiring weakens any further, unemployment will begin to rise."