Private sector employment in the U.S. increased roughly in line with economist estimates in the month of October, according to a report released by payroll processor ADP on Wednesday.
The report said the private sector added 182,000 jobs in October following a downwardly revised increase of 190,000 jobs in September.
Economists had expected private sector employment to climb by about 180,000 jobs compared to the addition of 200,000 jobs originally reported for the previous month.
Mark Zandi, chief economist of Moody’s Analytics, said, “Job growth as measured by the ADP Research
Institute is not slowing meaningfully in contrast with the recent slowdown in the government’s data.”
“Job gains are broad based with energy and manufacturing alone subtracting from the top line,” he added. “Small businesses, in particular, are contributing to the labor market’s solid performance.”
The report said service-providing employment rose by 158,000 jobs in October following a downwardly revised increase of 182,000 jobs in September.
Good-producing employment also climbed by 24,000 jobs, the strongest growth since January, as the addition of 35,000 construction jobs offset the loss of 2,000 manufacturing jobs.
ADP also said employment at small businesses increased by 90,000 jobs, while medium-sized businesses added 63,000 jobs and employment at large businesses edged up by 29,000 jobs.
“Firm size contributions to October employment gains returned to the same pattern we had been seeing for some time prior to September as small businesses rebounded to account for almost half the jobs added,” said Ahu Yildirmaz, VP and head of the ADP Research Institute.
“Large companies continue to be negatively impacted by trends such as low oil prices and the strong dollar driving weaker exports,” she added. “On the other hand, small businesses can benefit from these same trends.”
Friday morning, the Labor Department is scheduled to release its more closely watched monthly employment report, which includes both public and private sector jobs.
Economists expect the report to show an increase of about 190,000 jobs in October following the addition of 142,000 jobs in September. The unemployment rate is expected to dip to 5.0 percent from 5.1 percent.
The material has been provided by InstaForex Company – www.instaforex.com