The private sector demonstrated consistent job growth in October, according to a report from ADP released on Wednesday. The payroll processing firm documented an increase of 86,000 jobs, matching the revised numbers from September and surpassing Dow Jones’ expectations, which predicted an addition of 75,000 jobs.
Sector Performance
The majority of job gains were concentrated within the service sector, highlighting its continued strength in the labor market. Specifically, the breakdown of new jobs included:
- Trade, transportation, and utilities: 39,000 new positions
- Education and health services: 28,000
- Leisure and hospitality: 19,000
- Financial activities: 15,000
- Construction: 13,000
- Other services: 10,000
However, these gains were partially countered by job losses in other sectors. Professional and business services saw a reduction of 27,000 jobs, while natural resources and mining declined by 8,000 positions. Additionally, the information services sector, affected by advancements in artificial intelligence, experienced a loss of 2,000 jobs.
Salary Trends
Wage growth remained positive, particularly for workers who switched jobs. These individuals experienced a notable annual salary increase of 4.8%. A recent Bureau of Labor Statistics report indicated that the rate of employees voluntarily leaving their positions, a key measure of labor mobility, reached its highest point since March 2025.
Overall, the data reflects a 3.2% increase in base pay for all workers, with gross pay climbing by 4.7% year-over-year. Those who remained in their current roles also benefited, as their pay increased by 3%.
Employer Insights
“Employers of all sizes were hiring last month, and our data suggests that job-changers were lured by a combination of bonuses, overtime, and more hours in addition to higher base pay,” stated Nela Richardson, chief economist at ADP. “Taken together, earnings growth for these workers hit its fastest pace since March 2024.”
Job creation was distributed across various business sizes, with companies employing between 50 and 499 workers adding 33,000 positions, large businesses contributing 24,000, and small firms increasing their workforce by 28,000.
Looking Ahead
The ADP report serves as a precursor to the upcoming Bureau of Labor Statistics (BLS) nonfarm payrolls report, which is scheduled for release this Friday. Analysts anticipate that the BLS report will indicate an increase of 59,000 jobs for October, following a modest growth of 29,000 in September.
