A state law in Texas could prevent anyone who boycotts Israel from receiving Hurricane Harvey aid.
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In this Tuesday, Oct. 3, 2017, photo, job seeker Gustavo Cano, left, hands his resume to Javier Torres at a job fair at the Dolphin Mall in Sweetwater, Fla. On Thursday, Oct. 26, 2017, the Labor Department reports on the number of people who applied for unemployment benefits the week before.(Photo: Alan Diaz, AP)
The private sector added 235,000 jobs in October, payroll processor ADP said Wednesday, and the government’s employment report this week is likely to reveal even bigger gains as the effects of Hurricanes Harvey and Irma are reversed.
Economists predicted ADP would announce that U.S. businesses created 196,000 new jobs last month, according to a Bloomberg survey. The Labor Department on Friday is expected to tally 310,000 payroll advances by the public and private sectors.
More: Why the jobs market is healthy despite September’s losses
In September, Labor reported 33,000 job losses, the first since 2010, while ADP announced a tepid 135,000 gains. The Labor survey was more dramatically affected by the storms because it counts people as employed only if they’re paid during the week the survey is conducted. ADP generally includes all employees on the payroll.
As a result, the Labor survey is likely to highlight much stronger increases for October as employees idled by the hurricanes returned to work. Hurricane Harvey hit the Houston area in late August and Irma barreled through Florida in early September.
Even in normal months, ADP tries to forecast the Labor total but often differs from it substantially, though the two reports frequently track similar broad trends.
In October, small businesses added 79,000 jobs, midsize companies added 66,000 and large ones, 90,000.
Professional and business services led the gains with 109,000 new jobs. Construction added 62,000 as rebuilding efforts in Texas and Florida got underway; leisure and hospitality, 45,000; education and healthcare, 39,000; and manufacturing, 22,000.
“The job market rebounded strongly from the hit it took from Hurricanes Harvey and Irma,” said Mark Zandi, chief economist of Moody’s Analytics, which helps ADP compile the report.. “Looking through the hurricane-created volatility, job growth is robust.”
Job growth, based on Labor figures, has slowed this year as the low, 4.2% unemployment rate provides employers fewer qualified workers. If the economy added 310,000 jobs in October, as economists forecast, it would leave average monthly gains at about 164,000 this year, down from 187,000 in 2016. Still, that’s more than enough to continue to lower the unemployment rate. And the shrinking labor supply should soon push up average pay increases more sharply as businesses compete for fewer candidates, economists say.
That’s leading Federal Reserve officials to forecast a third interest rate hike in 2017 at the Fed’s December meeting as policymakers seek to head off an eventual spike in inflation.
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