After closing down by 0.92% yesterday, the S&P 500 (SPX) is trading lower again on Tuesday after ADP announced that private employers shed an average of 2,500 jobs per week for the four weeks ended November 1. That improved from the average weekly loss of 11,250 jobs for the four weeks ended October 25.
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The “sluggish” job growth data is preliminary and could change as additional data comes in, said the payroll processing company.
New Hires Rising Despite Slow Job Growth
Despite a trend of slow firing and hiring in recent months, new hires accounted for 4.4% of the workforce in October, up from 3.9% year-over-year. That isn’t due to an expanding headcount, but rather to replacing existing workers.
“This suggests that the share of new hires has grown as a result of employers replacing retiring and departing workers, and it’s a trend that’s likely to stick,” ADP said.
In addition, job growth is at risk of massively slowing down over the next decade. The Bureau of Labor Statistics (BLS) projects job growth of 3% between 2024 and 2034, down from 13% during the previous decade.
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