US private sector job growth sinks to 130,000 new hires in Oct

30 October 2013 14:55  [Source: ICIS news]

WASHINGTON (ICIS)--The US added only 130,000 new jobs in the private sector in October, payroll processing giant ADP said on Wednesday, marking the fourth straight month of hiring declines among non-government employers.

In its monthly report, ADP said that hiring among private sector employers in October was “well below the average of the last 12 months”.

The most recent high for private sector hiring was in June when 190,000 jobs were added. But the pace of hiring fell to 161,000 in July, 151,000 in August and 145,000 in September before hitting the October low of 130,000.

October’s hiring pace also was lower than the 148,000 new private sector jobs that were added in October 2012.

Mark Zandi, chief economist at Moody’s Analytics, noted that “average monthly growth has fallen below 150,000” and “any further weakening would signal rising unemployment”.

Economists say that the US must add at least 150,000 new jobs each month just to accommodate population growth and first-time job seekers entering the workforce.

Zandi said that “the weaker job growth is evident across most industries and company sizes”.

Moody’s Analytics participates in the ADP employment survey.

The ADP employment report often presages the US official employment and jobless report. That report, which was scheduled for 1 November, has been set back to 8 November because of the recent 16-day federal government partial shutdown.

Zandi said that part of the lower jobs growth seen in the private sector last month could be attributed to the shutdown and continuing business uncertainty about the US government’s budget and mounting debt.

But he said that the nation’s job market was already softening before the impact of the shutdown.

ADP provides payroll services to more than 400,000 US private sector employers, representing nearly 24m workers.

Paul Hodges studies key influences shaping the chemical industry in Chemicals and the Economy

By: Joe Kamalick
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