Private sector hiring grew by 86,000 jobs in October

U.S. private-sector employment increased by 86,000 jobs in October, according to the latest report from ADP Research and the Stanford Digital Economy Lab. The figure surpassed consensus expectations, which had projected growth of approximately 75,000 positions.

Service-providing sectors accounted for the majority of the gains, adding 82,000 jobs. Growth in this area was driven by trade, transportation, and utilities, which added 39,000 roles, followed by education and health services with 28,000 and leisure and hospitality with 19,000. Conversely, professional and business services saw a decline of 27,000 jobs, marking the third consecutive month of losses for that sector.

Goods-producing industries added 4,000 jobs overall. Within this category, the construction sector grew by 13,000 positions, while the manufacturing sector lost 1,000 jobs and natural resources and mining declined by 8,000.

Data on worker compensation showed a 3.2% year-over-year increase in base pay for private-sector employees, while gross pay rose by 4.7%. Workers who transitioned to new jobs experienced a 4.8% increase in base pay, compared to a 3.0% raise for those who remained in their existing positions.

Dr. Nela Richardson, chief economist at ADP, noted that employers of various sizes continued to hire last month. She added that job-changers were often incentivized by a combination of bonuses, overtime, and increased hours, contributing to the fastest pace of earnings growth for these workers since March 2024.

The October employment figure matches the revised September total, which was adjusted downward from an initial estimate of 90,000 to 86,000. This report precedes the official nonfarm payrolls data from the U.S. Bureau of Labor Statistics, scheduled for release on Nov. 6. The next ADP National Employment Report is set for publication on Dec. 2.