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Private job creation totaled a stunning 233,000 in October, far more than expected, ADP says

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Private job creation totaled a stunning 233,000 in October, far more than expected, ADP says

Private-job creation burst to its highest level in more than a year during October, despite a devastating storm season in the Southeast and major labor disruptions, ADP reported Wednesday.

The payrolls processing firm said companies hired 233,000 new workers in the month, better than the upwardly revised 159,000 in September and far ahead of the Dow Jones estimate for 113,000. ADP said it was the best month for job creation since July 2023.

“Even amid hurricane recovery, job growth was strong in October,” ADP chief economist Nela Richardson said. “As we round out the year, hiring in the U.S. is proving to be robust and broadly resilient.”

The numbers counter expectations for a slowdown in October on the heels of two brutal hurricanes — Helene and Milton — that ravaged the Southeast, with Florida and North Carolina getting slammed in particular.

On top of that, labor disruptions with port workers and Boeing were expecting to hit payrolls as well, with some economists suggesting that October would be an outlier report that Federal Reserve officials would largely dismiss when meeting next week.

However, the ADP report indicates that the labor market has held up. In addition to hiring rising, wages grew 4.6% from a year ago.

Moreover, gains were widespread. Leading sectors included education and health services (53,000), trade, transportation and utilities (51,000), construction and leisure and hospitality, which added 37,000 apiece, and professional and business services, which contributed 31,000.

Manufacturing was the only sector to report losses, down 19,000 on the month, as the Boeing strike since Sept. 13 has sidelined 33,000 of the company’s workers.

Job creation was strongly concentrated in companies with 500 or more employees, which added 140,000 of the total. Businesses with fewer than 50 workers were little changed, contributing just 4,000 of the total.

The ADP report traditionally tees up the more closely watched nonfarm payrolls count from the Bureau of Labor Services. That report, which comes Friday, is projected to show growth of just 100,000 and an unemployment rate holding steady at 4.1%.

However, the ADP and BLS reports can differ substantially, with the latter including government workers. The BLS report showed private job gains of 223,000 in September and 254,000 total payrolls growth.

Economics

Donald Trump chooses hedge fund executive Scott Bessent for Treasury Secretary

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Scott Bessent, founder and chief executive officer of Key Square Group LP, during an interview in Washington, DC, US, on Friday, June 7, 2024.

Stefani Reynolds | Bloomberg | Getty Images

President-elect Donald Trump has signaled his intention to nominate hedge fund executive Scott Bessent as his Treasury secretary, sources tell CNBC and NBC News.

The founder of Key Square Group had been considered a strong favorite for the position along with a few other close contenders.

As head of Treasury, Bessent, 62, will be both the U.S. fiscal watchdog as well as a key official to help Trump enact his ambitious economic agenda. Both a Wall Street heavyweight and advocate for many of the incoming president’s economic goals, he would come to office at a critical time as the U.S. wrestles with a growing economy alongside long-festering debt and deficit issues.

Like Trump, Bessent favors gradual tariffs and deregulation to push American business and control inflation. In addition, Bessent has advocated for a revival in manufacturing as well as energy independence.

The prospective nominee also has deep philanthropic ties through Yale University along with Rockefeller University and Classical American homes Preservation Trust.

One obstacle Bessent will have to overcome is his past affiliation with billionaire investor and global gadfly George Soros. Bessent served as chief investment officer for Soros’ fund.

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Economics

Trump might name Kevin Warsh as Treasury chief then Fed chair later, report says

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Kevin Warsh

Jin Lee | Bloomberg | Getty Images

President-elect Donald Trump is considering naming Kevin Warsh as Treasury secretary then ultimately sending him off to serve as Federal Reserve chair, according to a Wall Street Journal report.

A former Fed governor himself, Warsh would move over to the central bank after current Chair Jerome Powell’s term expires in 2026, according to the Journal, which cited sources familiar with Trump’s thinking.

The speculation comes with Treasury being the last major Cabinet position for which Trump has yet to state his intention.

Various reports have put Warsh as one of the finalists with Apollo Global Management CEO Marc Rowan and hedge fund manager Scott Bessent. Among the potential scenarios would be one where Bessent would lead the National Economic Council initially then go over to Treasury after Warsh takes over at the Fed.

However, Trump is known for the propensity to change his mind, and the report noted that nothing has been finalized.

Read the full Wall Street Journal story here.

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Economics

Matt Gaetz withdraws from consideration as America’s attorney-general

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MATT GAETZ, Donald Trump’s choice for America’s attorney-general, spent November 20th meeting senators and telling reporters it had been “a great day of momentum”. The next day, however, Mr Gaetz withdrew his name from consideration, acknowledging that “my confirmation was unfairly becoming a distraction.” This was not self-effacement from a MAGA firebrand, but a reflection of reality: Mr Gaetz had little chance of being confirmed even by a Republican-controlled Senate. The Republican Party may belong to Mr Trump, but his power is not absolute.

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