Instant view: Private sector adds 110,000 jobs in October

Wed Nov 2, 2011 8:47am EDT
 
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NEW YORK (Reuters) - U.S. private employers added 110,000 jobs in October, beating economists' expectations, a report by a payrolls processor showed on Wednesday.

COMMENTS:

DAVID RESLER, CHIEF ECONOMIST, NOMURA SECURITIES, NEW YORK

"The headline number was a smaller gain than we expected, we had it at 135,000, but combine that with the upward revision the last month and it wasn't too far off what our guess was.

"More importantly, it portrays a job market that's improved a bit since earlier in the summer. But we're still not generating the kind of job growth that's going to be enough to bring down the unemployment rate quickly.

"We do think, however, the unemployment will come down a tad in the October report when it comes out on Friday.

"This is not likely to change anyone's forecast for non-farm payrolls on Friday since it's reasonably close to the consensus and the difference between the two series is large enough that you wouldn't want to put too much weight on this."

KATHY LIEN, DIRECTOR OF CURRENCY RESEARCH, GFT, JERSEY CITY, NEW JERSEY

"Although the Challenger and ADP reports have done a poor job of forecasting payrolls in recent months, the lack of red flags in this morning's labor market numbers will be enough of a relief to the Federal Reserve who will be making its monetary policy announcement in just a few hours. No news may be good news for the U.S. but with MF Global imploding, 2,870 employees are at risk of losing their jobs. Of course not all of these jobs are based out of the U.S., but combined with a recent layoff announcement from Credit Suisse, job cuts could still grow in the coming months."   Continued...