Summary
Alternative job market estimates indicate that the U.S. is seeing a slowdown in private sector employment, which may influence the Federal Reserve's future decisions about interest rates. ADP reports that private employers cut jobs weekly in October, while other analyses show a decrease in nonfarm payrolls. This data comes during a government shutdown, delaying official employment reports.
Key Facts
- Private employers in the U.S. cut an average of 11,250 jobs weekly in October, according to ADP.
- Goldman Sachs estimates a loss of around 50,000 nonfarm jobs in October, the largest monthly loss since 2020.
- ADP reported a gain of 42,000 private-sector jobs in October, an increase from a loss of 29,000 in September.
- A Dow Jones survey predicted a 60,000 job loss in October and an increase in the unemployment rate to 4.5 percent.
- Job postings in late October reached the lowest level since 2021.
- The Federal Reserve is expected to discuss another interest rate cut in December, as inflation concerns persist.
- Current delays in government data releases are due to an ongoing government shutdown.
