Private-sector job losses in the United States slowed sharply in late October, with employers cutting an average of 2,500 positions per week during the four weeks ended 1 November, according to fresh data released by ADP on Tuesday.
The latest figure marks a significant improvement from the four weeks to 25 October, when ADP’s moving average showed private employers were shedding 11,250 jobs per week.
Earlier readings showed gains of 4,750 jobs per week as of 18 October and 14,000 per week as of 11 October.
In its release, ADP highlighted evolving labour market dynamics: "In October, new hires accounted for 4.4% of all employees, ADP payroll data shows, up from 3.9% a year ago.
"This growing share of new hires would seem to run counter to the slowed pace of hiring. That contradiction tells us a lot about today’s jobs market.
"New hires typically fluctuates with the business cycle, but the aging U.S. workforce means that demographics have begun playing a bigger role in hiring decisions.
"Employers are hiring to replace existing workers, not increase headcount."
The data comes from ADP’s NER Pulse series, which is published three times per month alongside the organisation’s broader National Employment Report issued at the start of each month.
ADP’s most recent monthly reading, released on 5 November, showed the private sector added 42,000 jobs in October, reversing the 32,000 positions lost in September.
“Private employers added jobs in October for the first time since July, but hiring was modest relative to what we reported earlier this year,” ADP Chief Economist Nela Richardson said in the press release.
Attention now turns to the Bureau of Labor Statistics, which confirmed it will release its delayed September employment situation report on 20 November. The data was initially scheduled for 3 October but was postponed due to the government shutdown.
