[US] 571k jobs added in October thanks to boost from hospitality

[US] 571k jobs added in October thanks to boost from hospitality
05 Nov 2021

Private-sector job creation climbed significantly higher in October, thanks to a hiring boost in the hospitality sector, CNBC reports.

Payroll processing firm ADP reported the new figures on November 3. Companies added 571,000 for the month, beating the 395,000 Dow Jones estimate and just ahead of September’s downwardly revised 523,000. It was reportedly the best month for jobs since June.

Leisure and hospitality - a category including bars, restaurants and hotels - saw a gain of 185,000, in a sector that continues to rank well below its pre-pandemic employment level. 

The performance of the leisure and hospitality industry is considered a proxy for an economic recovery that stalled this summer following a rise in the COVID delta variant and a snarl in supply lines.

“The job market is revving back up as the delta wave of the pandemic winds down,” Mark Zandi - chief economist at Moody’s Analytics, the firm which helps ADP compile the report - said. “Job gains are accelerating across all industries, and especially among large companies. As long as the pandemic remains contained, more big job gains are likely in coming months.”

Growth in the sector helped fuel an overall 458,000 gain in services jobs.

Professional and business services also contributed 88,000 new hires, trade, transportation and utilities added 78,000, and education and health services jobs were up 56,000.

Goods-production added 113,000 positions; construction was up 54,000 and manufacturing contributed 53,000.

With regards to size, businesses with more than 500 employees led the way with 342,000 new hires. Businesses with fewer than 50 workers added 115,000 and medium-sized firms increased by 114,000.

The ADP report was released two days ahead of the Labor Department’s more closely watched nonfarm payrolls count. According to Dow Jones, it is projected to show an increase of 450,000.

ADP can serve as a precursor to the government’s count, however, the two can widely differ.

In September, ADP’s tally of private payroll creation - which initially stood at 568,000 before being revised lower by 45,000 - was well in excess of the Labor Department’s 317,000. The total nonfarm payrolls count for September was just 194,000, far below estimates and hampered by a loss of 123,000 government jobs.

Source: CNBC

Private-sector job creation climbed significantly higher in October, thanks to a hiring boost in the hospitality sector, CNBC reports.

Payroll processing firm ADP reported the new figures on November 3. Companies added 571,000 for the month, beating the 395,000 Dow Jones estimate and just ahead of September’s downwardly revised 523,000. It was reportedly the best month for jobs since June.

Leisure and hospitality - a category including bars, restaurants and hotels - saw a gain of 185,000, in a sector that continues to rank well below its pre-pandemic employment level. 

The performance of the leisure and hospitality industry is considered a proxy for an economic recovery that stalled this summer following a rise in the COVID delta variant and a snarl in supply lines.

“The job market is revving back up as the delta wave of the pandemic winds down,” Mark Zandi - chief economist at Moody’s Analytics, the firm which helps ADP compile the report - said. “Job gains are accelerating across all industries, and especially among large companies. As long as the pandemic remains contained, more big job gains are likely in coming months.”

Growth in the sector helped fuel an overall 458,000 gain in services jobs.

Professional and business services also contributed 88,000 new hires, trade, transportation and utilities added 78,000, and education and health services jobs were up 56,000.

Goods-production added 113,000 positions; construction was up 54,000 and manufacturing contributed 53,000.

With regards to size, businesses with more than 500 employees led the way with 342,000 new hires. Businesses with fewer than 50 workers added 115,000 and medium-sized firms increased by 114,000.

The ADP report was released two days ahead of the Labor Department’s more closely watched nonfarm payrolls count. According to Dow Jones, it is projected to show an increase of 450,000.

ADP can serve as a precursor to the government’s count, however, the two can widely differ.

In September, ADP’s tally of private payroll creation - which initially stood at 568,000 before being revised lower by 45,000 - was well in excess of the Labor Department’s 317,000. The total nonfarm payrolls count for September was just 194,000, far below estimates and hampered by a loss of 123,000 government jobs.

Source: CNBC