People wait in line to attend TechFair LA in Los Angeles, Calif. (Photo: Reuters)
The ADP National Employment Report finds the U.S. private sector added 135,000 jobs as Hurricanes Harvey and Irma “hurt the job market in September.” Small business hiring, which is disproportionately impacted by events such as natural disasters, declined by 7,000 as mid-sized and large business added 63,000 and 79,000 jobs, respectively.
With estimates ranging from -25,000 to 175,000, the media forecast called for 140,000.
“Hurricanes Harvey and Irma hurt the job market in September,” Mark Zandi, chief economist of Moody’s Analytics said. “Looking through the storms the job market remains sturdy and strong.”
“In September, small businesses experienced a dip in hiring,”said Ahu Yildirmaz, vice president and co-head of the ADP Research Institute. “This is in part due to Hurricane’s Harvey and Irma which significantly impacted smaller retailers.”
Worth noting, the ADP National Employment Report confirmed continued strong gains in goods-producing services, led by high-laying manufacturing and construction jobs. Manufacturing added 18,000 jobs and construction tacked on an impressive 29,000.
Earlier in the week, the MNI Chicago Business Barometer soared to 65.2 and ISM Manufacturing Index (PMI) surged to beat the forecast for the fourth straight month. Construction spending posted a solid 0.5% gain.
Natural resources and mining added 1,000 jobs.
Service-providing jobs overall increased by 88,000, led by a 51,000-job gain in professional and business services.
