Economy, Small Business

Economic Data Roundup (11/02/2016)

11/2/16 12:00 PM

iStock_000009946822_Small.jpgThe only important economic data released this morning was a report from ADP, which showed that business hiring continued to cool in America last month. Specifically, only 147K private-sector payrolls were added to the economy in October, much worse than the +170K gain economists had expected, and the smallest monthly increase since May. The September gain, though, was revised much higher, which helped keep the less volatile 3-month average for ADP’s hiring estimates at +171K, a still healthy overall pace of job creation. Essentially all of the private-sector payrolls added last month were in the services sector (+165K), including a large gain in the "professional and business" arena, while payrolls in the goods-producing sector plunged by 18K. Moreover, construction employment fell by 15K payrolls in October, the largest monthly decline since 2010 but not too surprising considering how weak U.S. construction spending has been recently. Elsewhere in the report, small business hiring slowed considerably in October, as firms with 1-49 employees added just 34K workers, one of the worst monthly gains of the recovery. Smaller firms earlier this year were the main driver of private-sector job growth in America but hiring among these companies has now slowed for four months in a row. Uncertainty about the economy and the upcoming election are likely causing many small business owners to remain cautious with their hiring strategies in the near-term. Ahu Yildirmaz, vice president and head of the ADP Research Institute, added that “Job growth appears to be shifting from small to large companies due to the lessening impact the global economic environment had on large companies earlier in the year. This is also true because large companies often have the resources to attract workers with better pay and benefit packages.”

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Sources: Econoday, Twitter, ZH, ADP

Post author: Charles Couch