Private-sector jobs ticked up in October, ADP report shows
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With government-issued jobs reports on ice thanks to the shutdown, new numbers from payroll processor ADP will have to sate our thirst for employment data.
Driving the news: The firm says private sector employers added 42,000 jobs in October — a rebound after shedding more than half as many positions the previous month.
- It was the first time employers added jobs since July in ADP's data.
Why it matters: "There has been a recovery from the relatively short-lived period of negative jobs growth, but the recovery is tepid and it is not broad-based," ADP chief economist Nela Richardson told reporters Wednesday morning.
- "While we cheer positive job gains in the month of October, we note that the hiring is a slowdown from what we reported earlier this year — and more concentrated," Richardson added.
Between the lines: As the Federal Reserve debates whether to cut interest rates again in December — and with little government employment data to go on — the ADP numbers offer some ammunition to both sides.
- On the one hand, the rebound into positive territory points to a job market that isn't completely falling apart, in which case a rate cut would not be needed.
- On the other hand, 42,000 jobs isn't a particularly robust reading, so job market worriers still have plenty to fret about.
Zoom in: Among the few categories that added jobs were education and health care; trade, transportation and utilities; and financial activities.
- Other sectors, including leisure and hospitality and professional/business services, shed positions.
- The October jobs report, originally scheduled to be released Friday, will be delayed as the government shutdown drags on.
Of note: Also out Wednesday, the New York Fed released its quarterly data on household credit and debt. It showed household debt increased by $197 billion in Q3.
- Delinquency rates were stable for most categories of debt, except for student loans, for which missed payments are now appearing on credit reports.
