The National Employment Report indicated that private sector employment increased by 125,000 jobs from September to October, rising mostly in the service-providing sector.
However, jobs in the goods-producing sector, including construction, mining, and manufacturing, experienced a monthly decrease. Construction, which grew last month, experienced a decline of 4,000 jobs, according to ADP Research Institute and Moody’s Analytics.
“While job growth continues to soften, there are certain segments of the labor market that remain strong,” said Ahu Yildirmaz, vice president and co-head of the ADP Research Institute. “The goods-producing sector showed weakness; however, the healthcare industry and midsized companies had solid gains.”
The chart below demonstrates the rate of increase since 2003:
The report reveals that the number of jobs added in September was revised down from 135,000 to 93,000.
“Job growth has throttled way back over the past year,” said Mark Zandi, chief economist of Moody’s Analytics. “The job slowdown is most pronounced at manufacturers and small companies. If hiring weakens any further, unemployment will begin to rise.”
Below is a breakdown of job segments that saw changes in employment between September and October:
The goods-producing sector decreased by 13,000 jobs, including:
Natural resources and mining: Decreased 13,000 jobs
Construction: Decreased 4,000 jobs
Manufacturing: Decreased 4,000 jobs
The service-providing sector increased by 138,000 jobs, including:
Trade/transportation/utilities: Increased 32,000 jobs
Information: Increased 3,000 jobs
Financial activities: Increased 17,000 jobs
Professional and business services: Increased 18,000 jobs
Education and health services: Increased 41,000 jobs
Leisure and hospitality: Increased 19,000 jobs
Other services: Increased 9,000 jobs
NOTE: This report is a monthly measure of the change in total U.S. non-farm private employment derived from actual, anonymous payroll data of client companies served by the company. The data is collected and processed with statistical methodologies similar to those used by the U.S. Bureau of Labor Statistics.
