ADP said 43k private sector jobs were created in Oct, more than twice the expectations of 20k and Sept was revised higher to a loss of only 2k vs the initial reading of -39k. The entire contribution to the jobs gain was in the services sector where 77k net jobs were added, mostly for small and medium sized businesses. The goods producing sector shed 34k jobs, 12k of which were in manufacturing and 23k in construction. With current expectations for Friday’s payroll report of an 80k increase in private sector job gains, today’s better than expected report of 43k isn’t going to move the needle in terms of market forecasts but it still is good to see some pickup in jobs captured by ADP. Overall though, the pace of job gains still remain below what is needed in order to move the unemployment lower on a sustainable basis.
