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U.S. private-sector employment rose by 130,000 jobs in October, according to the national employment report released today by Automatic Data Processing Inc. (NASD: ADP). In addition, September’s employment growth was revised down to 145,000 from 166,000.
The increase is less than the 150,000 job gain economists surveyed by Reuters had forecast.
“The government shutdown and debt limit brinksmanship hurt the already softening job market in October,” said Mark Zandi, chief economist at Moody’s Analytics, which produces the report with ADP. “Average monthly growth has fallen below 150,000. Any further weakening would signal rising unemployment. The weaker job growth is evident across most industries and company sizes.”
According to ADP's report, the service-providing sector added 107,000 jobs in October, down from 130,000 in September. The goods-producing sector added 24,000 jobs in October, up from 16,000 in September.
Large businesses added the most jobs in the month with 81,000, followed by small firms with 37,000 jobs. Medium-sized companies added 13,000 jobs.
The report is derived from a sample of ADP data from approximately 400,000 U.S. business clients representing more than 23 million U.S. employees. The report's methodology utilizes ADP payroll data, U.S. Bureau of Labor Statistics employment data, and the Philadelphia Federal Reserve Bank’s Aruoba-Diebold-Scotti Business Conditions Index.