US services sector expands for fifth month in October

It’s not only Election Day Week, it’s also jobs week! (Please direct your complaints to the folks who make the schedules.)

As usual, the first jobs data point out of the gate was the ADP Employment Report, and it wasn’t pretty.

America added 365,000 private sector jobs in October, according to ADP. That’s nearly half the 650,000 economists had expected. Ouch. For comparison, 753,000 jobs were added in September.

The services sector added the most jobs, with the leisure and hospitality industries leading the way. After being decimated by the spring lockdown, it’s these areas of the economy that still continue to recover at the fastest pace because they have the most ground to make up.

The ADP report doesn’t predict what the government’s official jobs report will say on Friday, but it gives us an indication of what its flavor might be.

Economists are worried that the labor market won’t be able to continue recovering at the rate it has over the summer. As of last month, the United States was still down 10.7 million jobs from February. Whoever wins the presidential contest will have to work on fixing jobs.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *