A worker wearing a protective mask and gloves assembles the visors at Cartamundi’s Hasbro-owned manufacturing facility in East Longmeadow, Massachusetts, on Wednesday, April 29, 2020.
Adam Glanzman | Bloomberg via Getty Images
According to Wednesday’s ADP report, private job creation fell sharply in October as the US economy struggled against the resurgence of the coronavirus epidemic.
The firms added 365,000 positions for the month, far below the 600,000 estimate from an economist Dow Jones survey. That was the lowest increase reported from ADP since July.
The ADP estimates, compiled with Moody̵7;s Analytics, differ widely from the government’s official non-farm payroll report, especially during the pandemic. However, the September-revised 753,000 increase was actually higher than the Labor Department’s 661,000 figure, while the report for the previous months was significantly lower than the government’s.
From an industry perspective, services account for nearly all job creation, with 348,000. The hotel industry, most affected by virus-related downtime, created 125,000 more jobs, while education and medical services rose 79,000 and professional and business services closed. contribute 60,000.
Of the 17,000 increases in commodity production, construction, and manufacturing, each rose 7,000 while natural resources and mining rose 3,000.
Job creation is split among businesses of size, with companies employing between 50 and 499 employees leading with 135,000 people. Large firms contribute 116,000 and small firms 114,000.
“The labor market continues to create more jobs, but at a slower rate,” said Ahu Yildirmaz, vice president and co-director of the ADP Research Institute. “Despite the slower pace, we’ve seen employment growth across all sectors and sizes.”
The report came two days before the Labor Department examined more closely.
Economists expect the report to show a 530,000 growth, which would bring the total number of positions brought back since May to almost 12 million. The unemployment rate is expected to drop two tenths of a percentage point to 7.7%.
However, the increase was just over half of the 22 million positions lost in the first two months of the pandemic.
Economists are concerned that job creation could slow amid an increase in Covid-19 cases, which increased by 86,507 on Tuesday, bringing the total pandemic to 9.3 million, according to Project Follow follow Covid. More than 224,000 Americans have died from the virus and its complications.