Companies added fewer workers than projected in October, indicating the U.S. job market lost momentum amid budget strife in Washington, a private report based on payrolls showed today.
The 130,000 increase in employment was the smallest in six months and followed a revised 145,000 gain in September that was weaker than initially estimated, according to the ADP Research Institute in Roseland, New Jersey. The median forecast of 39 economists surveyed by Bloomberg called for an advance of 150,000 jobs.
Companies employing 500 or more workers added 81,000 jobs. Medium-sized businesses, with 50 to 499 employees, took on 13,000 workers and small companies expanded payrolls by 37,000.
While companies have started announcing their hiring plans for the holiday-shopping season, employment gains have slowed so far in the second half of the year. Companies added 129,000 workers on average from July through September, less than an average increase of 201,000 in the first six months of the year, according to Labor Department data.