October 11, 2013

Private sector’s new jobs number disappoints

The figure is below analysts’ projections.

Los Angeles Times

WASHINGTON — The private sector added a disappointing 166,000 net new jobs last month and significantly revised down its estimate for August in a sign that labor market growth weakened through the summer, payroll processing firm ADP said Wednesday.

The figure for last month was below analysts’ projections that the closely watched report would show that businesses added 180,000 jobs in September.

September’s job growth was an improvement from the previous month, but only because ADP revised its August figure down to 159,000 from the initially reported 176,000.

“The job market appears to have softened in recent months,” said Mark Zandi, chief economist at Moody’s Analytics, which assists ADP with its monthly report.

The ADP figures take on added significance this month because the partial federal government shutdown probably will delay Friday’s release of the Labor Department’s September jobs report.

Economists have been projecting that report would show the economy added 184,000 net new private and public sector jobs last month, up from 169,000 in August. The unemployment rate is projected to have held steady at 7.3 percent.

The weaker ADP numbers could affect those projections.

Chris Rupkey, chief financial economist at the Bank of Tokyo-Mitsubishi in New York, called ADP’s September figure a “middle of the road” number. But ADP has not always been a great predictor of overall job growth, he said.

“This kind of leaves us high and dry on what the economy is doing,” Rupkey said of the delayed government jobs report.

ADP showed that financial services firms cut 4,000 jobs last month and the manufacturing sector remained soft, Zandi said.

Were you interviewed for this story? If so, please fill out our accuracy form

Send question/comment to the editors




Further Discussion

Here at PressHerald.com we value our readers and are committed to growing our community by encouraging you to add to the discussion. To ensure conscientious dialogue we have implemented a strict no-bullying policy. To participate, you must follow our Terms of Use.

Questions about the article? Add them below and we’ll try to answer them or do a follow-up post as soon as we can. Technical problems? Email them to us with an exact description of the problem. Make sure to include:
  • Type of computer or mobile device your are using
  • Exact operating system and browser you are viewing the site on (TIP: You can easily determine your operating system here.)