Private companies added 86,000 jobs in October, matching September’s downwardly revised total and slightly exceeding the 75,000 increase expected by economists surveyed by Dow Jones, ADP reported Wednesday. The figures point to continued stability in private-sector hiring, with gains spread across several industries.
Service industries accounted for most of the growth. Trade, transportation and utilities added 39,000 jobs, followed by education and health services with 28,000 and leisure and hospitality with 19,000. Financial activities gained 15,000 jobs, construction added 13,000 and other services increased by 10,000.
Those gains were partly offset by losses. Professional and business services shed 27,000 jobs, while natural resources and mining lost 8,000. Information services, which may be affected by investment in artificial intelligence, declined by 2,000.
Pay continued to increase. Workers who changed jobs recorded an annual gain of 4.8%, while those who stayed in their positions saw pay rise 3%. Across workers overall, base pay was up 3.2% year over year, and gross pay increased 4.7%.
ADP chief economist Nela Richardson said employers of all sizes were hiring and that job-changers were drawn by bonuses, overtime and additional hours as well as higher base pay. Their earnings growth reached its fastest pace since March 2024, she said.
Companies with 50 to 499 employees added 33,000 jobs in October. Small businesses added 28,000, while large businesses added 24,000.
The ADP report precedes the Bureau of Labor Statistics’ October nonfarm payrolls report, due Friday. Economists surveyed by Dow Jones expect that report to show 59,000 jobs added, following growth of 29,000 in September.
Sources: CNBC Markets.