NEW YORK Dec 5 U.S. private-sector employers
added fewer jobs than expected in November as superstorm Sandy
hit companies in the northeast, a report by a payrolls processor
showed on Wednesday.
The ADP National Employment Report showed the private sector
added 118,000 jobs during the month. Economists surveyed by
Reuters had forecast a gain of 125,000 jobs.
"Superstorm Sandy wreaked havoc on the job market in
November, slicing an estimated 86,000 jobs from payrolls," said
Mark Zandi, chief economist of Moody's Analytics in a statement.
Zandi helps compile the report.
"The manufacturing, retailing, leisure and hospitality, and
temporary help industries were hit particularly hard by the
storm. Abstracting from the storm, the job market turned in a
good performance during the month," he said.
Zandi said that underlying growth in private sector jobs was
around 150,000 in November after the impact of Sandy is
discounted as well as about 60,000 to 70,000 jobs that were
brought forward due to the start of the holiday season.
October's private payrolls were revised slightly down to an
increase of 157,000 from the previously reported 158,000.
The ADP figures come ahead of the government's much more
comprehensive labor market report on Friday, which includes both
public and private sector employment.
"It's close to what the market was expecting. If Friday's
employment report from the U.S. Labor Department comes in
similar to this, that would be a good outcome," said Terry
Sheehan, economic analyst at Stone and McCarthy Research
Associates in Princeton, New Jersey.
That report is expected to show an increase in overall
nonfarm payrolls of 93,000 in November based on a Reuters poll
of analysts, and a rise in private payrolls of 95,000.
Economists often refer to the ADP report to fine-tune their
expectations for the payrolls numbers, though it is not always
accurate in predicting the outcome.