Private-sector hiring picks up as workers continued to pour into service jobs
Private payrolls rose by 571K in October
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U.S. private-sector hiring accelerated in October as the impact of the COVID-19 delta variant waned and supplemental unemployment benefits expired.
The U.S. economy added 571,000 private-sector jobs last month, up from a downwardly revised 523,00 new jobs in September, according to the ADP National Employment report released Wednesday. Analysts surveyed by Refinitiv were expecting the addition of 400,000 jobs.
"The job market is revving back up as the Delta wave of the pandemic winds down," said Mark Zandi, chief economist at Moody’s Analytics. "Job gains are accelerating across all industries, and especially among large companies."
Workers continued to flood back into the service sector following the September expiration of supplemental unemployment benefits that paid an additional $300 per week. Firms added workers in the services sector, led by gains in leisure and hospitality (+185,000), professional and business services (+88,000) and trade, transportation and utilities (+78,000).
The goods-producing sector added 113,000 workers with robust job gains in construction (+54,000) and manufacturing (+53,000).
Job gains picked up for both small- (+115,000) and medium-sized (+114,000) businesses, but slowed for large-sized organizations (+342,000).
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The Labor Department's nonfarm payroll report will be released Friday with economists surveyed by Refinitiv expecting the U.S. economy to have added 450,000 jobs in September after gaining 194,000 jobs in September.