US private sector adds 571,000 jobs in Oct

Washington: Private companies in the US added 571,000 jobs in October, indicating a renewed momentum in the labour market recovery, payroll data company Automatic Data Processing (ADP) reported.

“Service sector providers led the increase and the goods sector gains were broad based,” said Nela Richardson, chief economist at ADP.

Service sector saw a job gain of 458,000 in October, with 185,000 jobs added in leisure and hospitality, according to the report, which was produced by the ADP Research Institute in collaboration with Moody’s Analytics, reports Xinhua news agency.

Richardson noted that large companies fuelled the stronger recovery in October, with a job gain of 342,000.

Medium and small businesses added 114,000 and 115,000 jobs, respectively.

“The labur market showed renewed momentum last month, with a jump from the third quarter average of 385,000 monthly jobs added, marking nearly 5 million job gains this year,” said Richardson.

In the second quarter, the private sector saw an average monthly job growth of roughly 748,000 due to vaccination progress and continued economic recovery.

But amid a Delta variant-fuelled Covid-19 surge, there was a marked slowdown in job growth in the third quarter.

The number of Covid cases had been going up since June with the rapid spread of Delta, before the national outlook started to improve since early September, when case levels began to fall.

“The job market is revving back up as the Delta wave of the pandemic winds down,” said Mark Zandi, chief economist of Moody’s Analytics, noting that job gains are accelerating across all industries.

“As long as the pandemic remains contained, more big job gains are likely in coming months,” Zandi added.

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