ADP, a privately run employment report, just released it’s findings for October:
Private-sector employment increased by 43,000 from September to October on a seasonally adjusted basis, according to the latest ADP report released today. The estimated change of employment from August to September was revised up from the previously reported decline of 39,000 to a smaller decline of 2,000. Since employment began rising in February, the monthly gain has averaged 34,000 with a range of -2,000 to +65,000 during the period.
October’s figure is within this recent range and is consistent with the deceleration of economic growth that occurred in the spring. Employment gains of this magnitude are not sufficient to lower the unemployment rate. Given modest GDP growth in the second and thirds quarters, and the usual lag of employment behind GDP, it would not be surprising to see several more months of lethargic employment gains, even if the economic recovery gathers momentum.
The longer this sloth-like recovery continues, the more people will be dealing with long-term unemployment and will slip over that cliff from middle class into poverty. This isn’t going to be pretty for anyone, but perhaps it will generate enough populist momentum to break the two-party/corporate stranglehold on public policy.
What’s on your mind tonight?