ADP Sees September Job Growth of 106,000

Roseland, NJ, October 31, 2007--Nonfarm private employment grew 106,000 from September to October a seasonally adjusted basis, according to the ADP National Employment Report.

The estimated change in employment from August to September was revised up 3,000 to 61,000. October’s increase of 106,000 marked an acceleration of private nonfarm employment after three months (July through September) during which the average monthly change was just 43,000.

In October, employment in the services sector of the economy grew 134,000. Employment in the goods-producing sector declined 28,000, the 11th consecutive monthly decline. Employment in the manufacturing sector fell 14,000.

Small- and medium-size businesses more than accounted for the increase in total employment in October, with employment among these businesses advancing by 113,000. In contrast, employment among large businesses fell by 7,000 in October, the fifth consecutive monthly decline.

The gains in employment at small- and medium-size businesses were concentrated in the service-providing sector of the economy, and showed a gain of 132,000. However, employment among these same-size businesses in the goods-producing sector fell 19,000.

Two sectors of the economy hit hardest by recent problems in mortgage markets have been residential construction and financial activities related to home sales and mortgage lending.

In October, employment in the construction sector fell 16,000, the 13^th decline in the last 14 months, bringing the cumulative decline since August of 2006 to 173,000.