Connect with us

Hi, what are you looking for?

Business

Job growth up in US private sector on services boost

Hiring in the US private sector rebounded in October, with education and health care creating the most jobs.

US private hiring picked up in October to 113,000 according to payrolls firm ADP, above analyst expectations
US private hiring picked up in October to 113,000 according to payrolls firm ADP, above analyst expectations - Copyright POOL/AFP Stanislav FILIPPOV
US private hiring picked up in October to 113,000 according to payrolls firm ADP, above analyst expectations - Copyright POOL/AFP Stanislav FILIPPOV

Hiring in the US private sector rebounded in October, with education and health care creating the most jobs, payroll firm ADP said Wednesday.

Policymakers have been eyeing the pace of job growth as they work to rein in inflation by lifting interest rates to cool demand.

While the labor market has been resilient in the face of higher rates, economists expect officials to hold off a further hike at the end of a policy meeting Wednesday as they work to balance the inflation fight against tipping the economy into a downturn.

In October, the US private sector added 113,000 jobs, above the 100,000 figure expected by analysts, according to the latest ADP report.

This was also higher than the 89,000 figure in September.

“No single industry dominated hiring this month, and big post-pandemic pay increases seem to be behind us,” said ADP chief economist Nela Richardson in a statement.

She added that although the job market has slowed, it is still “enough to support strong consumer spending.”

The service sector accounted for most job creation last month with education and health services adding 45,000 jobs, while trade, transport and utilities added 35,000.

Meanwhile, wage growth slowed to a two-year low, said ADP.

Those who remained in their jobs reported a 5.7 percent pay increase from a year ago, while those who changed jobs saw their wages rise 8.4 percent.

“Overall, job growth remains positive,” said Rubeela Farooqi, chief US economist at High Frequency Economics.

She added that the pace of job growth will likely slow as higher interest rates bite, weighing on demand and hiring moving forward.

Analysts have also cautioned that September ADP hiring data came in much lower than the official reading, noting that the figure may not be definitive.

AFP
Written By

With 2,400 staff representing 100 different nationalities, AFP covers the world as a leading global news agency. AFP provides fast, comprehensive and verified coverage of the issues affecting our daily lives.

You may also like:

Tech & Science

Radiolab focuses on investigative journalism into science, tech and even legal history. Continuing with over 200 episodes.

Life

Catherine, Princess of Wales and her husband Prince William on Thursday made their first joint public engagement.

Tech & Science

The Internet Archive, an online repository of web pages, was offline Thursday after its founder confirmed a major cyberattack.

Life

Internet personality Ashley Leechin chatted about her latest endeavors, which include the charitable organization Foster Love and the importance of mental health.