A month after Superstorm Sandy brought the US to a standstill the economic repercussions are still revealing themselves.
According to statistics compiled by the ADP Research Institute and Moody’s Analytics Inc, in November the amount of workers added to US companies decreased.
Despite economists predicting an increase of 125,000 the New Jersey-based research body found a gain of just 118,000 workers in November.
This follows October’s figure of 157,000 – negatively revised from ADP’s initially estimated 158,000 gain in payrolls.
Many companies in the mid-Atlantic have delayed scheduled hiring’s until they, and the region, have fully recovered from the Superstorm’s battering.
Mark Zandi, chief economist with Moody’s Analytics Inc, commented that if the effects of Superstorm Sandy were taken out of the equation ‘the job market turned in a good performance during the month. This is especially impressive given the uncertainty created by the presidential election and the fast approaching fiscal cliff’.
Meanwhile an economist with PNC Financial Services Group Inc stated: ‘Outside of Sandy, I think businesses are still hiring. There’s underlying job growth that’s strong enough to employ new entrants into the labour force as well as some of those who lost their jobs going into the recession.’
However, the ongoing fiscal cliff saga has been instrumental in keeping companies cautious. If the job market is to regain significant momentum in the months ahead US leaders need to reach an accord which would allow them to bypass next year’s dreaded series of automatic tax hikes and spending cuts.
The ADP figures showed that Service Providers were responsible for the largest increase in employment, gaining 114,000. Construction employment crept up by 23,000 and factory employment recorded a rise of 16,000. Construction and manufacturing companies added a combined total of 4,000 workers to this month’s result.
It was also estimated in the report that Superstorm Sandy accounted for a reduction in payrolls of around 86,000.
Economists are predicting that this month’s Labour Department report could show an increase of 93,000 in private payrolls. Unemployment is forecast to retain last month’s level of 7.9 per cent.
As of 15:00 pm
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