American companies have been cutting more than 11,000 jobs every week through late October, according to new real-time data released Tuesday by payroll processor ADP.
Although ADP reported last week that the U.S. economy added 42,000 jobs in October compared to September, the new weekly figures paint a less positive picture. The data suggests that hiring has slowed and layoffs are picking up, a sign of growing strain in the labor market.
Nela Richardson, ADP’s chief economist, said the job market struggled to maintain steady growth during the second half of the month. ADP recently began releasing weekly payroll estimates to give a clearer, more up-to-date view of employment trends alongside its traditional monthly reports.
Because of the ongoing U.S. government shutdown, official labor data from the Bureau of Labor Statistics has been delayed. As a result, the Federal Reserve and other policymakers have been turning to private sources like ADP to track economic conditions.
If the shutdown ends soon, which seems possible after the Senate passed a temporary funding bill, the flow of official data could resume before the Fed’s next meeting. However, officials may still face some gaps in the reports they rely on to gauge the strength of the job market and broader economy.