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ADP’s Weekly Gauge Shows Late-October Job Losses, Challenging Earlier Hiring Rebound

With BLS reports delayed by the shutdown, markets look to private gauges to judge labor cooling, reinforcing expectations for further Fed easing.

People wait in a line outside a newly reopened career center for in-person appointments in Louisville, Kentucky, U.S., April 15, 2021.  REUTERS/Amira Karaoud

Overview

  • ADP’s new weekly estimate shows private employers cut an average 11,250 jobs per week in the four weeks ended Oct. 25, signaling late-month weakening.
  • The reading contrasts with ADP’s report last week of a 42,000 October private‑payroll gain and an earlier mid‑October four‑week average of 14,250 added jobs, with ADP citing inconsistent hiring late in the month.
  • With official BLS data delayed by the government shutdown, policymakers and investors are relying more on private trackers to gauge employment conditions.
  • Forecasts point to an October nonfarm payroll decline, with Goldman Sachs estimating a 50,000 drop and a Dow Jones survey pointing to a 60,000 decrease alongside a higher unemployment rate.
  • Additional signs of strain include more than 1 million announced job cuts this year and job postings on Indeed at their lowest since February 2021, developments that could bolster the case for further Fed rate cuts.