US Private Sector Job Growth Slows in October: "Average Weekly Decrease of 11,000 Jobs"

ADP Releases Employment Report

Private sector employment in the United States deteriorated last month, raising concerns about a slowdown in the labor market.

A job recruitment notice is posted at a retail store in Arlington Heights, Illinois, USA. Photo by AP News Agency

According to an employment report released on November 11 (local time) by ADP, a U.S. private labor market research firm, the number of new jobs in the private sector decreased by an average of 11,250 per week over the four weeks ending October 25, compared to the previous month.

Previously, in a report released last week, ADP stated that private sector employment in October increased by 42,000 compared to the previous month. This means that the weekly average rose by more than 10,000, and the latest report suggests that the labor market slowed significantly toward the end of October compared to the beginning of the month.

Amid these signs of a labor market slowdown, the U.S. Federal Reserve resumed its monetary easing cycle in September by implementing its first interest rate cut of the year after a nine-month pause. This move reflected concerns over shrinking employment. Goldman Sachs, a U.S. investment bank, estimated that if employees participating in the federal government's workforce reduction policy-known as the voluntary separation program-are included, new hiring in October would have decreased by 50,000 compared to the previous month.

This ADP private employment indicator has drawn even more attention as it was released while the U.S. Department of Labor delayed its employment report due to a federal government shutdown (temporary work stoppage). The monthly employment report published by the Bureau of Labor Statistics (BLS), which covers both the private and public sectors, is considered the most reliable indicator, but the shutdown has created a gap in key economic statistics. As a result, it has become difficult to clearly assess the state of the labor market.

However, with the Senate's passage of a stopgap budget bill the previous day, the end of the shutdown is imminent, and the release of inflation and employment-related indicators is expected to resume soon. These indicators are likely to be released before the Federal Reserve holds its regular Federal Open Market Committee (FOMC) meeting next month.

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