Roseland, NJ, United States (4E) – U.S. employers added fewer workers than estimated in October, signaling a slowdown in the U.S. labor market amid the debate in Washington over the budget, according to a private payrolls report released Wednesday.
Private employment rose 130,000 in October, the fewest gain in six months, following a revised 145,000 addition in the previous month that was weaker than previously estimated, according to the Roseland, New Jersey-based ADP Research Institute. The September figure was originally estimated at 166,000.
Economists predicted the ADP data to show 150,000 new jobs created by private businesses in October.
The monthly result is the first snapshot of the labor market health during the partial federal government shutdown that began Oct. 1, resulting in the furlough of several workers and contractors. The U.S. Federal Reserve will have its policy meeting Wednesday and policy makers are expected to assess the progress in employment as they decide when to scale back monetary stimulus.
Majority of the additions came in services, which gained 107,000 positions.
Large businesses led the hiring activity this month with 81,000 new jobs. Firms with less than 50 employees added 37,000 jobs, while medium-sized businesses gained just 13,000.