The Fitz-Gerald Group principal Keith Fitz-Gerald and Sarge986 president Stephen Guilfoyle discuss the stock markets volatile reaction to the Fed’s rate hike on ‘The Claman Countdown.’
Private payroll job growth rose faster than expected in October, suggesting that companies are continuing to hire new workers despite growing fears of an economic slowdown, according to the ADP National Employment Report released Wednesday morning.
Companies added 239,000 jobs last month, beating the 195,000 gain that economists surveyed by Refinitiv had predicted and better than the downwardly revised gain of 192,000 in September.
The hiring increase came even as goods-producing industries reported a loss of 8,000 jobs. The manufacturing sector accounted for the bulk of those losses, shedding 20,000 jobs last month. That was offset by gains of 11,000 in natural resources in mining, and a gain of 1,000 in the construction industry.
Service-providing industries, meanwhile, saw payrolls jump by 247,000 in October, with the gains stemming from just two sectors: leisure and hospitality, which added a whopping 210,000 new jobs, and trade, transportation and utilities, which saw payrolls grow by 84,000.
Every other sector saw job losses last month, with information shedding the most at 17,000. That was followed by professional/business services (-14,000), financial activities (-10,000) and education and health services (-5,000).
“This is a really strong number given the maturity of the economic recovery, but the hiring was not broadbased,” said Nela Richardson, chief economist at ADP. “Goods producers, which are sensitive to interest rates, are pulling back, and job changers are commanding smaller pay gains. While we’re seeing early signs of Fed-driven demand destruction, it’s affecting only certain sectors of the labor market.”
This is a developing story. Please check back for updates.
