Private payrolls post monthly gain of 110,000
Equity gleaned from refinancing homes seems to be going into the houses or to college costs. Credit: iStock
Private-sector payrolls moderately increased last month, led by the services sector and small businesses, according to an ADP report Wednesday.
Payrolls rose 110,000, as services employment gained 114,000 and goods-producing employment fell 4,000.
Economists had expected an overall gain of about 100,000.. "The recent trend in private employment is probably below a pace consistent with a stable unemployment rate and reflects the sluggish pace of GDP growth exhibited earlier this year," said Joel Prakken, chairman of Macroeconomic Advisers, which produces the report from anonymous payroll data supplied by Automatic Data Processing Inc..
Small-business employment rose 58,000; medium businesses, 53,000. Large-business employment fell 1,000.
September's result also was revised to a rise of 116,000 for private-sector payrolls from a prior estimate of 91,000.
Markets look to ADP's report on private-sector payrolls to provide some guidance on the Labor Department's estimate for U.S. employment, which will be released Friday and includes information on both private- and public-sector payrolls.
Overall nonfarm employment has been growing since October 2010.
Analysts polled by MarketWatch expect the Labor Department to report a slight slowdown for employment, with overall nonfarm payrolls up a weak 90,000 in October, compared with 103,000 in September. Analysts also expect the nation's unemployment rate to remain at 9.1 percent.
