US companies add fewest new workers in almost a year

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‍Companies in the US hired the lowest number of new workers in almost a year in the aftermath of disruptions from Hurricanes Harvey and Irma.

That's according to payroll provider ADP which said that its small business customers cut around 7,000 jobs in September.

Several small and independent retailers in both Texas and Florida were forced to close during the tropical storms and many suffered severe damage from wind, rain and flooding.

That slowed hiring and even resulted in a number of lay-offs.

Houses are seen submerged in flood water caused by Tropical Storm Harvey in Northwest Houston, Texas, U.S. August 30, 2017. / Reuters Photo

The Labor Department reported a spike in applications for unemployment benefit following the storms.

"Hurricanes Harvey and Irma hurt the job market in September," said Mark Zandi, chief economist at Moody’s Analytics Inc.

Zandi said that the two storms combined likely resulted in between 50,000 and 60,000 fewer people added to payrolls last month.

That’s the same number of new jobs Amazon expects to create in a single swipe as cities scramble to host its second US site, HQ2.

However, despite the slump in new hires, Zandi remains optimistic.

"Looking through the storms, the job market remains sturdy and strong," he said.

Source(s): Reuters