NEW YORK (Reuters) - U.S. private employers added 110,000 jobs in October, beating economists’ expectations, a report by a payrolls processor showed on Wednesday.
DAVID RESLER, CHIEF ECONOMIST, NOMURA SECURITIES, NEW YORK
“The headline number was a smaller gain than we expected, we had it at 135,000, but combine that with the upward revision the last month and it wasn’t too far off what our guess was.
“More importantly, it portrays a job market that’s improved a bit since earlier in the summer. But we’re still not generating the kind of job growth that’s going to be enough to bring down the unemployment rate quickly.
“We do think, however, the unemployment will come down a tad in the October report when it comes out on Friday.
“This is not likely to change anyone’s forecast for non-farm payrolls on Friday since it’s reasonably close to the consensus and the difference between the two series is large enough that you wouldn’t want to put too much weight on this.”
KATHY LIEN, DIRECTOR OF CURRENCY RESEARCH, GFT, JERSEY CITY, NEW JERSEY
“Although the Challenger and ADP reports have done a poor job of forecasting payrolls in recent months, the lack of red flags in this morning’s labor market numbers will be enough of a relief to the Federal Reserve who will be making its monetary policy announcement in just a few hours. No news may be good news for the U.S. but with MF Global imploding, 2,870 employees are at risk of losing their jobs. Of course not all of these jobs are based out of the U.S., but combined with a recent layoff announcement from Credit Suisse, job cuts could still grow in the coming months.”
PETER BOOCKVAR, EQUITY STRATEGIST, MILLER TABAK + CO, NEW YORK
“While 110,000 job adds were better than expected and that’s encouraging, the amount is still below the 10-month average year-to-date of 137,000. It also isn’t much different than the 125,000 private sector job gains that are expected from Friday’s Payroll number.”
“It looks pretty resilient, not too surprising. It’s still consistent with stable labor market conditions, not getting too much better and not getting much worse either. It’s still at a pace that wouldn’t suggest much downside on the unemployment rate. We think ADP could outperform private sector payrolls this month. We’re looking for a softer NFP result.”
OMER ESINER, CHIEF MARKET ANALYST, COMMONWEALTH FOREIGN EXCHANGE, WASHINGTON
“It was mostly in line with expectations. It’s not likely to prompt any major adjustment to Friday’s forecast. So I think the data is likely to take a backseat to the Fed announcement later today as well as ongoing developments in Europe.”
PETER JANKOVSKIS, CO-CHIEF INVESTMENT OFFICER AT OAKBROOK INVESTMENTS LLC, LISLE, ILLINOIS
“I’d suspect the reaction to that number should be positive.
“It is not a huge amount better, but the fact that it was better than expected and there was a revision in the last month’s number is a pretty encouraging sign.
“Certainly this is encouraging now, but I think Europe is the big show and what (markets) are watching right now.”
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