Royal Oak Tribune
Report: U.S. companies add fewer jobs than forecast
U. S. companies added fewer jobs in October than forecast, a private report showed, indicating the absence of additional fiscal stimulus is prompting some firms to adjust payrolls as the pandemic continues to wear on the recovery.
Businesses’ payrolls increased by 365,000 last month after a revised 753,000 rise in September, according to ADP Research Institute data released Wednesday. The October gain was weaker than all but one estimate in a Bloomberg survey of economists and below the median projection for a 643,000 gain.
The slower pace of hiring illustrates a long road to recovery for the labor market as the coronavirus continues to reduce revenue at service providers including the travel, hotel and restaurant industries. The figures, along with the recent resurgence in infections, underscore the need for lawmakers to agree on another round of fiscal assistance to keep select businesses afloat and their employees on payrolls.
“The labor market continues to add jobs, yet at a slower pace,” Ahu Yildirmaz, vice president and co-head of the ADP Research Institute, said in a statement. “Although the pace is slower, we’ve seen employment gains across all industries and sizes.”
The data precede the government’s monthly jobs report on Friday, which is forecast to show private payrolls increased by about 700,000 after a 877,000 gain in September. At the same time, public sector employment is likely to decline due to the unwind in federal government hiring as the 2020 Census concludes, according to a note by Bloomberg economists.