US Private Sector Adds 86,000 Jobs in October
ADP reported that private companies added 86,000 jobs in October, exceeding expectations and marking the 16th consecutive month of employment growth.
Private companies in the United States added 86,000 jobs in October, according to data released Wednesday by ADP. The figure exceeded the Dow Jones estimate of 75,000 and matched the downwardly revised total for September, marking the 16th consecutive monthly increase in employment.
Growth was primarily driven by the service sector, with trade, transportation, and utilities adding 39,000 jobs, followed by education and health services with 28,000. These gains were partially offset by a decline of 27,000 jobs in professional and business services. While hiring accelerated in services, growth in manufacturing slowed.
Overall base pay rose by 3.2%, but workers changing jobs saw a 4.8% annual gain. ADP chief economist Nela Richardson noted that earnings growth for these workers hit its fastest pace since March 2024, as job-changers were lured by a combination of higher base pay, bonuses, overtime, and more hours.
Analysts attribute this labor market resilience to strong economic growth and robust consumer spending. This consistent hiring trend may allow the Federal Reserve to maintain its focus on combating inflation. The report precedes the official nonfarm payrolls count from the Bureau of Labor Statistics scheduled for Friday.
