This is more than the 89,000 jobs created by the private sector in September, but less than the 130,000 that was expected by analysts, according to the Market Watch consensus. The American private sector created 113,000 jobs in October.
Hiring was not driven by a particular sector, underlines ADP chief economist Nela Richardson.
Stable unemployment rate
Wages, which had increased sharply two years due to a labor shortage, helping to fuel inflation, continued to rise. But much less strong, since the rate of increase is the lowest since the end of 2021: +5.7% for those who kept the same job, +8.4% for those who changed.
“The strong post-pandemic wage increases appear to be behind us,” commented Nela Richardson.
She specifies that “overall, the October figures depict a well-balanced employment situation. And even though the job market has slowed, that’s still enough to support strong consumer spending.”
The official figures for October will be published this Friday, and should show a clear slowdown in job creation, expected to be half as high as in September, at 175,000. The unemployment rate should remain stable, at 3 .8%.
The American central bank (Fed) will conclude its meeting this Wednesday at noon, and should maintain its rates at their current level, to avoid causing economic activity to slow down too much. This could, in fact, hurt employment, or even push the United States into recession.
“We expect the pace (of job creation) to moderate due to the lagged and cumulative effects of monetary policy, which are expected to weigh on demand and hiring in the future,” commented Rubeela Farooqi, chief economist for High Frequency Economics.
2023-11-01 13:16:35
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