Hir­ing slower af­ter Sandy

Pri­vate sur­vey shows down­turn in ad­vance of government’s jobs report on Fri­day.

Austin American-Statesman - - BUSINESS - By Christo­pher S. Rugaber Hir­ing B

The com­bi­na­tion of U.S. em­ploy­ers that shut down be­cause of Su­per­storm Sandy and fears over loom­ing tax in­creases and spend­ing cuts likely slowed hir­ing sharply in Novem­ber.

A pri­vate sur­vey re­leased Wed­nes­day showed com­pa­nies added fewer work­ers last month than in Oc­to­ber. The same pic­ture is ex­pected when the government is­sues a more com­pre­hen­sive jobs report for Novem­ber on Fri­day.

Still, most an­a­lysts say the un­der­ly­ing econ­omy re­mains healthy and is cre­at­ing jobs at a still-mod­est but steady pace.

Econ­o­mists ex­pect Fri­day’s government report to show em­ploy­ers added 110,000 jobs in Novem­ber, ac­cord­ing to Fac­tSet. And they think the un­em­ploy­ment rate will re­main 7.9 per­cent.

Other an­a­lysts ex­pect much lower job gains, roughly 25,000 to 50,000, be­cause of Sandy and anx­i­ety over the tax in­creases and spend­ing cuts set to take ef­fect in Jan­uary.

Yet with­out the de­pres­sive ef­fects of Su­per­storm Sandy, many think em­ploy­ers would have added up to 200,000 jobs last month — even stronger than the solid 171,000 jobs added in Oc­to­ber.

“We don’t think the la­bor mar­ket has lost any un­der­ly­ing mo­men­tum,” Paul Edel­stein, an econ­o­mist at IHS Global In­sight said. “We just have th­ese two is­sues.”

Su­per­storm Sandy tore into the East Coast on Oct. 29, clos­ing restau­rants, re­tail­ers and other busi­nesses and cut­ting off power to 8 mil­lion homes in 10 states.

The government would count peo­ple who couldn’t

Newspapers in English

Newspapers from USA

© PressReader. All rights reserved.