Private employers hired at a slower-than-expected rate in October, suggesting the labor market recovery from the coronavirus crisis is cooling, according to ADP’s National Employment Report. announced on Wednesday.
The company created 365,000 new jobs last month, the report found, significantly short of the 650,000 job gains that economists surveyed by Refinitiv had expected.
While the data is often a good indicator of what to expect in a more closely watched job report from the Labor Department, the ADP figure has often missed government figures since the pandemic caught early mid-march. (For example, in June, the ADP initially said private employers added 2.37 million jobs ̵1; well below the 4.8 million reported by the US government. economy lost 2.7 million jobs in May, while the Ministry of Labor reported an increase of 2.5 million).
The Labor Department employment report is forecast to show that the US economy added 600,000 jobs last month, down slightly from September’s 661,000 increase. Analysts predict the unemployment rate will drop. down to 7.6% from 7.9%.
This is a development story. Please check back for updates.