ADP: Private employers added 110,000 jobs in October
Private sector employers added 110,000 jobs to payrolls last month, led by hiring among small- and medium-sized businesses, according to a report by Automatic Data Processing Inc., or ADP. The firm provides a monthly jobs report in advance of the government's official tally, to be released Friday.
ADP also said that private sector employers added 116,000 jobs in September, more than the 91,000 the firm had previously reported.
The ADP report does not include government employment, which has been falling consistently, and shed 34,000 jobs in September. State and local governments have jettisoned 641,000 jobs over the last three years, according to the Economic Policy Institute. A shrinking government sector is helping keep the unemployment rate elevated even as the country adds jobs.
"The recent trend in private employment is probably below a pace consistent with a stable unemployment rate and reflects the sluggish pace of GDP growth exhibited earlier this year," said Joel Prakken, chairman of Macroeconomic Advisers LLC, which puts out the jobs report with ADP.
Medium-sized businesses added 53,000 jobs in October, while small businesses -- those with 50 to 499 employees -- added 53,000, ADP said. Large companies lost 1,000 jobs.
Gains were concentrated in service-providing sectors, which added 114,000 positions. Goods-producing sectors shed 4,000 jobs. Manufacturing shed 8,000 jobs, ADP said.
Other signs indicate that manufacturing slowed in October. The ISM Manufacturing Index was 50.8 in October, showing very slight expansion, down from 51.6 in September. A number above 50 indicates growth. Although new orders improved, a good sign, companies cut back on inventories because of fears about the future, according to Nigel Gault of IHS Global Insight.
-- Alana Semuels
Photo: A Whirlpool operations plant in Ohio. Whirlpool said it would cut 5,000 jobs after demand fell. Credit: Daniel Acker / Bloomberg