Latest / Markets with Megan: A Quick Financial Markets Update / Big Companies Hire, Small Shops Sigh | S2 E092 | 11-05-25

Transcript

Big Companies Hire, Small Shops Sigh | S2 E092 | 11-05-25 · Markets with Megan: A Quick Financial Markets Update

• 0:00
  SPEAKER_00: With the limited data that we get during the longest government shutdown now on record, we did get some information today about the labor market.
• 0:08
  SPEAKER_00: It is Wednesday, November the 5th, and this is Markets with Megan.
• 0:13
  SPEAKER_00: If you like this podcast, please subscribe.
• 0:15
  SPEAKER_00: You can hit that alarm bell, share with your friends, family, or colleagues.
• 0:19
  SPEAKER_00: But we're here today to break down some economic data.
• 0:22
  SPEAKER_00: And unfortunately, as I mentioned, the government still remains shut down.
• 0:25
  SPEAKER_00: This is the longest shutdown on record.
• 0:27
  SPEAKER_00: So we're not getting a lot of economic data, but we are getting anything from any private reports.
• 0:33
  SPEAKER_00: And what we saw today was the ADP payroll report.
• 0:37
  SPEAKER_00: This is for the month of October, and we did see a little bit of stabilization here.
• 0:41
  SPEAKER_00: Again, it's just one month.
• 0:43
  SPEAKER_00: ADP actually is going to start releasing some of this data on a weekly basis, but this is the monthly report.
• 0:50
  SPEAKER_00: It showed that the private payrolls rose by 42,000 for the month of October.
• 0:56
  SPEAKER_00: And that's after seeing two consecutive months of decline.
• 0:59
  SPEAKER_00: So there's some optimism here that maybe we're getting a little bit of stabilization in the labor market.
• 1:04
  SPEAKER_00: That would be great news, but let's not take one month as a trend.
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  SPEAKER_00: And let's break this down.
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  SPEAKER_00: Unfortunately, what we're seeing is that this was completely created by large businesses.
• 1:13
  SPEAKER_00: So those employing 500 plus or more, the small and medium-sized businesses actually saw declines.
• 1:19
  SPEAKER_00: Small businesses actually shed payrolls now for five out of the past six months.
• 1:24
  SPEAKER_00: So this is important because small and mid-sized businesses are a big employment generator for our country.
• 1:30
  SPEAKER_00: Now, what we saw was the majority of this was led by the service producing area.
• 1:36
  SPEAKER_00: And when we break this down, what do we think that is?
• 1:38
  SPEAKER_00: That's probably some of this AI spending that we're seeing that's filtering into these payroll additions.
• 1:44
  SPEAKER_00: It's not necessarily, as I mentioned, the small and mid-sized businesses that are creating jobs.
• 1:49
  SPEAKER_00: That's all we have on the payroll front.
• 1:52
  SPEAKER_00: If you like this podcast, please you can go back to any um marketswithmegan.fm.
• 1:56
  SPEAKER_00: Thank you.