US companies shed jobs in late October, weekly ADP data show

[WASHINGTON] US companies shed 11,250 jobs per week on average in the four weeks ended Oct 25, according to data released on Tuesday (Nov 11) by ADP Research.

The figures suggest the labour market slowed in the second half of October, compared with earlier in the month. ADP’s most recent monthly report, released last week, showed private-sector payrolls increased 42,000 in October after declining in the prior two months.

The figures come after an array of companies flagged plans to reduce headcount in recent weeks. A report from outplacement firm Challenger, Gray & Christmas showed employers announced the most job cuts for any October in more than two decades, spurring anxiety about the health of the labour market.

Separate data from the University of Michigan show that 71 per cent of respondents expect unemployment to rise in the year ahead, the largest share since 1980.

The longest government shutdown in US history has delayed the release of key economic statistics, including the jobs reports for September and October. Investors have been looking to other metrics, like ADP, to fill the gaps. ADP announced last month that it will now also be releasing a four-week moving average of the change in total private employment.

Goldman Sachs Group economists estimate US payrolls declined by 50,000 in October, after including employees who participated in the government deferred resignation programme. They now see an increased risk of labour market deterioration. BLOOMBERG