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Report: The number of US jobs rose last month for the first time since July

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Tim Henderson
(Stateline)

The United States gained 42,000 jobs in October, the first increase since July as measured by ADP, a private payroll processing company and the only source of jobs estimates during the government shutdown, as federal jobs reports have been paused.

ADP’s report, released Wednesday, showed job increases mostly in West Coast states, which gained 37,000 jobs between September and October, and continued job losses on the East Coast. The New York area, including New Jersey and Pennsylvania, lost 20,000 jobs while coastal states from Delaware to Florida lost 8,000 jobs.

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Most of the job increases were in trade and transportation, which includes stores, wholesale and shipping jobs. In that sector, there were 47,000 new jobs for the month.

Those industries added jobs despite uncertainty over tariffs, said Guy Berger, a labor economist and senior fellow at the Burning Glass Institute, a labor market think tank based in Philadelphia. But Berger said it’s unclear whether the job gains will be long lasting or will disappear in new rounds of high tariffs on consumer goods.

“They’re feeling headwinds but they’re very ping-pongy, It’s like, ‘Who knows what the next bit of news will be or how you’re going to have to adjust your supply?’” Berger said.

“In years past this would have been considered quite weak, but the number was positive at least,” Berger said. “Because immigration flows have been squeezed during the current administration and maybe have even gone negative at this point, we don’t need a lot of jobs each month to keep the labor market on an even keel.”

The ADP report is based on weekly payroll data for 26 million private-sector employees. It does not include an estimate of the unemployment rate, unlike the suspended federal report from the Bureau of Labor Statistics. It also does not break down the statistics by race or gender.

Last month’s job gains were concentrated in large businesses with more than 500 employees, which gained 70,000 jobs for the month, while jobs dropped overall for small and medium-size businesses, according to the report.

The median annual pay growth was 4.5 percent for those in the same jobs and 6.7 percent for those in new jobs, the same as September and little changed for more than a year, the report said, indicating that “shifts in supply and demand are balanced.”