ADP: Oct Private-Sector Jobs 110K Vs Expected +100K

Private businesses added slightly more jobs than expected in October, according to a report released Wednesday. Other job data also suggest some improvement in the labor markets.

Private-sector jobs in the U.S. rose by 110,000 last month, according to a national employment report published by payroll giant Automatic Data Processing Inc. (ADP) and consultancy Macroeconomic Advisers.

Economists surveyed by Dow Jones Newswires had expected ADP would report an October increase of 100,000. The September data were revised to show a rise of 116,000 versus 91,000 reported a month ago.

The ADP survey tallies only private-sector jobs, while the Bureau of Labor Statistics' nonfarm payroll data, to be released Friday, include government workers.

Economists surveyed by Dow Jones Newswires expect total nonfarm payrolls rose by 100,000 slots in October, not far from the 103,000 new jobs added in September.

The October unemployment rate is expected to remain at 9.1%. The U.S. jobless rate has been 9.0% or more since April, a sign of how weak labor markets are.

The latest ADP report showed large businesses with 500 employees or more cut 1,000 employees from their staffs, while medium-size businesses added 53,000 workers in October and small businesses that employ fewer than 50 workers hired 58,000 new workers.

Service-sector jobs increased by 114,000 last month, and factory jobs fell by 8,000.

ADP, of Roseland, N.J., says it processes payments of one in six U.S. workers. Macroeconomic Advisers, based in St. Louis, is an economic-consulting firm.

Other job-related reports released Wednesday were equally upbeat about the October labor market.

TrimTabs estimated 160,000 new jobs were created in October, double their September estimate of 64,000 positions.

Also, layoff announcements dropped sharply in October. Outplacement firm Challenger, Gray & Christmas said the number of planned job cuts announced by U.S.-based employers plunged 63% last month to 42,759, the lowest monthly total since June.

Even so, the labor markets remain quite fragile. According to the Challenger report, so far this year employers have announced a total of 521,823 planned job cuts, 16% more than the 449,258 job cuts announced between January and October 2010.

--By Kathleen Madigan, Dow Jones Newswires; 212-416-2466; kathleen.madigan@dowjones.com

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