The U.S. economy added just 365,000 jobs in October, according to the latest monthly estimate from ADP, well below economists’ expectations and the surge earlier in the summer.
Economists interviewed by Dow Jones had expected 600,000 new jobs last month, according to CNBC.
“The labor market continues to add jobs, yet at a slower pace,” said Ahu Yildirmaz, vice president of the ADP Research Institute. “Although the pace is slower, we’ve seen employment gains across all industries and sizes.”
While the 365,000 new jobs would normally represent a banner month, the steep decline in growth while the economy remains in a deep hole from the COVID-19 pandemic raises questions as to the speed of the recovery.
The October figure remains well below the 3.3 million new jobs ADP reported in May and the 4.5 million in June as the country emerged from the most stringent lockdowns. Approximately 19.4 million jobs were lost in April, according to the payroll and benefits processor.
Some 10 million jobs lost in the pandemic have still not come back. The recent surge in COVID-19 cases has raised the prospects of more restrictions in hot spots around the country.
The vast majority of the new jobs added last month were in service sectors, including 125,000 in leisure and hospitality, which was particularly hard hit by the pandemic.
Construction and manufacturing each saw a modest increase of 7,000 jobs.
The official government tally of the October jobs situation is due out Friday.
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