Private sector employment rebounded strongly in October, with employers adding 571,000 jobs despite persistent labor shortages amid the COVID-19 pandemic, according to payroll giant ADP.
Small businesses added 115,000 jobs, including 56,000 at businesses with between one and 19 employees and 60,000 at businesses with between 20 and 49 employees, according to
The service-providing sector added 458,000 jobs last month, including 88,000 in professional and business services such as accounting and tax preparation, along with 15,000 in financial activities like banking, and 185,000 in leisure and hospitality.
“The U.S. labor market regained its footing in October, as the impact of the Delta wave continued to fade and you can see that in today’s numbers,” said ADP chief economist Nela Richardson during a conference call Wednesday with reporters. “In October, private sector payrolls grew by 571,00 on net. This represents a jump from the third quarter average of 385,000.”
She noted that the gains in the goods-producing sector were the strongest this year. The goods-producing sector added 113,000 jobs, including 54,000 in construction, 53,000 in manufacturing and 6,000 in natural resources and mining. Franchises added 55,300 jobs.
“Job gains are approaching 5 million in 2021, though private sector payrolls are about 5 million jobs short of pre-COVID-19 levels,” said Richardson. “Other job data concur that some of these labor market headwinds that were faced in the third quarter are starting to recede. We’re seeing jobless claims continue to improve slowly, and are sitting at the lowest level since the pandemic began.”
However, job openings remain near record highs. “That’s a good sign of labor demand as businesses look to staff up to meet demand, as the impact of the pandemic fades and people are more comfortable going out and engaging in normal economic activities,” said Richardson. “There are some anecdotal reports that show continued difficulty in hiring and that’s a concern. The current pace of job growth is impressive, and we think will fuel a continued recovery.”
"The job market is revving back up as the Delta-wave of the pandemic winds down,” said Mark Zandi, chief economist of Moody's Analytics, which compiles the monthly national employment report with ADP, in a statement. “Job gains are accelerating across all industries, and especially among large companies. As long as the pandemic remains contained, more big job gains are likely in coming months."
