October Hiring Smashes Economist Expectations as Job Market Continues To Blaze
October brought with it hefty gains in what economists are calling a “robust” jobs market with 227,000 new private sector hires, ADP Research Institute reported.
That increase in employment was unexpected, according to CNBC, which reported that economists expected a growth of 189,000 jobs.
October’s number is an increase from September, which saw growth of 218,000, CNBC reported.
ADP’s breakdown of the jobs that were filled in October showed the large majority came from the service sector, with an increase of 189,000.
Under that heading, the largest increase was in the trade, transportation and utilities area, which grew by 61,000, and leisure and hospitality increased by 40,000 jobs in October.
The goods-producing sector increase was 38,000 jobs. The largest growth under that heading was construction and manufacturing, which increased by 17,000 jobs each this month.
Of those jobs added, 29,000 were added to small businesses, with fewer than 50 employees.
Midsized companies with up to 500 employees made up 96,000 of the jobs, and companies with more than 500 employees accounted for 102,000 of the new employment.
“The job market bounced back strongly last month despite being hit by back-to-back hurricanes,” Mark Zandi, chief economist at Moody’s, said in a statement according to CNBC.
“Testimonial to the robust employment picture is the broad-based gains in jobs across industries. The only blemish is the struggles small businesses are having filling open job positions,” Zandi added.
President Donald Trump, who campaigned on the promise of a better economy, continues to broadcast the positive economic news on his Twitter feed.
Stock Market up more than 400 points yesterday. Today looks to be another good one. Companies earnings are great!
— Donald J. Trump (@realDonaldTrump) October 31, 2018
Just out: Consumer Confidence hits highest level since 2000.
— Donald J. Trump (@realDonaldTrump) October 30, 2018
The ADP/Moody’s count is always anticipated because it tends to be a barometer for the Labor Department’s release of its non-farm payrolls report on the first Friday of every month.
The Labor Department’s report is typically a more conservative estimate.
In September, the government reported an increase of 134,000 jobs, which is considerably less than ADP’s estimate of 218,000.
On Friday, the Labor Department is expected to show an increase of about 190,000 new jobs in October, which would be a slight dip from last year’s average of 201,000, according to CNBC.
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