This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

US Hiring Last Month Was Likely Held Back By Sandy

Many workers who were temporarily dropped from payrolls because of Sandy would still consider themselves employed. As a result, the unemployment rate might not change much, if at all, for November.

Tens of thousands of people were put at least temporarily out of work. Two weeks after the storm hit, about 75,000 people in New York and New Jersey applied for unemployment benefits.

Several economists estimate that Sandy might lower the government's count of company payrolls by as many as 150,000. Those estimates are based in part on the effects of previous storms, such as Hurricane Katrina in 2005.

Kevin Cummins, U.S. economist at UBS, noted that Sandy hit a heavily populated area where many jobs pay above-average wages. The average weekly pay figure included in the jobs report is likely to decline as a result.

ADP, a payroll provider, said Wednesday that private companies added 118,000 jobs in November, down from 157,000 in the previous month. Mark Zandi, chief economist at Moody's Analytics, which helps compile data for ADP, estimated that the storm lowered the job gains by about 86,000.

But the payroll losses from the storm could be higher in the government's total. That's because ADP counts people as employed if they remain on a payroll â¿¿ even if they're not paid. By contrast, the government counts people as employed only if they're paid.

The effect on hiring from impending tax increases and federal spending cuts â¿¿ the "fiscal cliff"â¿¿ is harder to quantify. Those measures are set to take effect in January unless Congress and the White House reach a budget deal first.

Companies might not be cutting jobs because of the fiscal cliff. But the uncertainty surrounding the outcome is likely delaying some hiring, economists say.

Carl Riccadonna, an economist at Deutsche Bank, said several reports show companies are spending less on large equipment. That suggests they're probably postponing some hiring, too.

2 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,632.37 +17.56 0.11%
S&P 500 1,943.00 +1.72 0.09%
NASDAQ 4,417.8640 -1.6140 -0.04%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs