In the United States, private sector employment, calculated from payroll information for more than 25 million workers and considered a leading indicator for nonfarm employment data, was below market forecasts.
According to the latest report prepared by ADP Research Institute in collaboration with Stanford Digital Economy Lab, private sector employment increased by 113 thousand people in October. The expectation in the markets was for an increase of 130 thousand people. The previous month’s employment figure was 89 thousand people.
ADP Chief Economist Nela Richardson stated that this month’s hiring was not concentrated in a single sector and that large post-pandemic wage increases were left behind. However, overall, October figures paint a versatile employment picture. Even though the labor market is slowing, it’s still enough to support strong consumer spending.
According to the report, the annual wage increase in October was announced as 5.7 percent. The increase in employment was 19 thousand people in small enterprises, 78 thousand people in medium-sized enterprises and 18 thousand people in large-sized enterprises. While the production sector experienced an employment increase of 6 thousand people, the service sector stood out with 107 thousand people.