US companies cut an average of 11,250 jobs per week in the four weeks ending October 25, according to ADP Research. This data suggests a slowdown in the labour market during the latter half of October, contrasting with ADP’s monthly report indicating a 42,000 increase in private-sector payrolls for the full month. The ADP Research Institute is a leading provider of human capital management solutions, offering comprehensive payroll services and HR technology. Their data provides insights into employment trends and workforce dynamics.
These figures follow announcements from multiple companies regarding planned headcount reductions. A report by Challenger, Gray & Christmas revealed the highest number of announced job cuts for any October in over 20 years, raising concerns about the overall strength of the labour market. This confluence of negative indicators has heightened anxieties among investors and economists alike.
Additional data from the University of Michigan indicates that 71 per cent of respondents anticipate a rise in unemployment over the coming year. This represents the largest proportion since 1980, reflecting widespread apprehension about future economic conditions. The delayed release of key economic statistics, including jobs reports for September and October, due to the government shutdown, has further complicated the assessment of the labour market.
Goldman Sachs Group economists estimate a decline of 50,000 in US payrolls for October, factoring in employees involved in the government deferred resignation program. They have revised their outlook, now perceiving an elevated risk of deterioration in the labour market, underscoring the growing uncertainty surrounding the US economy.
