Private companies added 147,000 workers in October, missing economists' estimates in the last month of a bitter presidential campaign, as construction companies and manufacturers cut payrolls.
The data from payroll processor ADP (ADP) set the stage for Friday's jobs report from the U.S. Labor Department, which will be the last major piece of economic news before remaining voters head to the polls next Tuesday. Democrat Hillary Clinton holds a narrowing lead over Republican nominee Donald Trump.
The data showed the economy basically steady, with hiring down from September as financial companies like JPMorgan Chase (JPM) and Bank of America (BAC) added 18,000 workers, mitigating the drop of 15,000 workers at commercial construction businesses such as Fluor (FLR) and home builders including Toll Brothers (TOL) and KB Home (KBH) . Economists surveyed by Econoday had expected the October report to show 170,000 new jobs.
The U.S. economy has added jobs for a record 72 consecutive months, bringing the unemployment rate from a peak of 10% in 2009, shortly after President Barack Obama took office, to 5% in September.
October's jobs report is expected to show unemployment moving down to 4.9%. How much credit, or blame, any one set of politicians deserves for that is part of what voters will weigh in the presidential race as well as a close contest for control of the U.S. Senate.
"Job growth has slowed a bit over the last year, but 150,000 is a solid number, well above what's needed to absorb the growth in the working-age population," said Mark Zandi, chief economist at Moody's Analytics, which compiles the data for ADP. Voters' personal circumstances "are in much better shape than right years ago ... The average American is better off."
The construction industry accounted for the entire change since last month, and for the largest chunk of the miss compared with forecasts. The industry had added 11,000 jobs in September, so its decline marked a swing of about 26,000.