ADP Employment Report: Job Growth Hits 6-Month Low
Since June, payroll processor ADP’s nonfarm, private employment data showed that job creation has decreased in every subsequent month. June saw 190,000 payroll additions, a figure that dropped to 161,000 in July, 151,000 in August, 145,000 in September, and 130,000 in October. In fact, the 130,000 job gain was the lowest number of additions recorded since April’s 124,000. Even after September’s 166,000 payroll additions were downwardly revised, this month’s job creation was shockingly low. Economists had expected ADP to report that employers added 150,000 jobs to their payrolls in October.
Government statistics show that private and government employers added an average of only 143,000 jobs per month from July through September, a decrease from the 182,000 jobs per month added from April through June and the 207,000 jobs in the first three months of the year.
According to Moody’s Analytics chief economist Mark Zandi, whose firm helps compile payroll processor ADP’s National Employment Report, the party responsible for the month’s lower growth is clear. “The government shutdown and debt limit brinksmanship hurt the already softening job market in October,” he said in the Wednesday report. The hurt he speaks of is more than a minor bruise. Since average monthly growth has fallen below 150,000, “any further weakening would signal rising unemployment,” Zandi added. Low job creation is an across-the-board trend. “The weaker job growth is evident across most industries and company sizes,” the economist noted.