Wednesday, 2 November 2011

Private Sector Adds 110,000 Jobs in October

The dismal employment outlook in the U.S. has finally been brightened with the addition of 110,000 jobs by the private sector in October as compared to economists’ expectations of a gain of 101,000 jobs. The ADP National Employment Report also increased the job addition figures of September from the previously reported 91,000 to 116,000. A separate report has indicated that there was a sharp reduction in planned layoffs last month. ADP’s report was jointly developed with Macroeconomic Advisers LLC.

Peter Jankovskis, co-chief investment officer at Oakbrook Investments LLC in Lisle, Illinois said that “It is not a huge amount better, but the fact that it was better than expected and there was a revision in the last month’s number is a pretty encouraging sign.”

The ADP report has been published just before the government’s labor market report which is due on Friday and which will include both public and private sector employment figures. Immediately after the ADP report, U.S. stock Index futures rose while Treasuries widened losses. The dollar extended losses against the euro slightly.

The accelerated growth in the third quarter after a weak first-half performance has ebbed fears that the U.S. economy could be headed for another recession.

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