US private employers added 86,000 jobs in October, matching September's downwardly revised total and topping the Dow Jones estimate of 75,000, according to ADP. Gains spread across sectors, and workers who changed jobs saw a 4.8% annual pay increase. The BLS nonfarm payrolls report arrives Friday.
Private sector companies added 86,000 jobs in October, payrolls processing firm ADP reported Wednesday. The figure matched the downwardly revised September total and came in slightly ahead of the Dow Jones estimate for 75,000.
Services drove most of the hiring. Trade, transportation and utilities led with 39,000 new jobs, while education and health services added 28,000 and leisure and hospitality contributed 19,000. Financial activities added 15,000, construction 13,000 and other services 10,000.
However, professional and business services lost 27,000 jobs, and natural resources and mining lost 8,000. Information services, a sector potentially impacted by the artificial intelligence buildout, lost 2,000.
Job changers see 4.8% pay gain
Pay kept rising, particularly for people who switched employers. Job changers saw a 4.8% annual gain, while workers overall saw a 3.2% base pay gain and gross pay increased 4.7% annually. Pay for those staying in their jobs rose 3%.
ADP chief economist Nela Richardson said job changers were lured by a combination of bonuses, overtime and more hours in addition to higher base pay. She said earnings growth for these workers hit its fastest pace since March 2024.
Friday's BLS report is next
Companies with between 50 and 499 workers added 33,000 jobs. Small firms added 28,000, and large businesses added 24,000.
The ADP report serves as a precursor to the BLS nonfarm payrolls count. Economists surveyed by Dow Jones expect a gain of 59,000 in October, after September's growth of 29,000.
Source: CNBC
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