U.S. ADP Private-Sector Employment Up 86,000 in October, Beating Market Expectations

Professional services jobs decline... job growth varies by industry

U.S. private-sector employment rose more than expected in October, marking a second consecutive month of solid gains. However, job growth varied by industry: transportation and health services led the increases, while professional services jobs declined.

A worker stocks shelves at a supermarket in New York. New York, U.S. = Correspondent Hwang Yunju.

Automatic Data Processing (ADP), a U.S. employment data provider, said in a report released on November 4 that private-sector employment increased by 86,000 in October from the previous month.

The figure exceeded the 75,000 increase forecast by economists surveyed by Dow Jones. September's job gains were revised down to 86,000 from the previously reported 90,000. As a result, private-sector employment posted the same increase for two consecutive months.

The services sector led overall job growth. Employment increased by 39,000 in trade, transportation and utilities, and by 28,000 in education and health services and 19,000 in leisure and hospitality. Financial activities added 15,000 jobs.

By contrast, professional and business services lost 27,000 jobs, marking a third consecutive month of declines. Information services employment also fell by 2,000. Manufacturing employment was down by 1,000, as hiring remained weak in some industries.

By company size, employment increased by 33,000 at medium-sized businesses, 28,000 at small businesses and 24,000 at large businesses. Employment expanded across all company sizes.

Wage growth continued as well. Base pay for private-sector workers rose 3.2% in October from a year earlier. Total pay, including bonuses and overtime, increased by 4.7%.

Base pay rose 3.0% for workers who stayed with their current employers and 4.8% for those who changed jobs. By total pay, the increases were 4.4% for workers who stayed and 7.6% for job changers.

“Last month, employers across companies of all sizes were hiring,” said Nela Richardson, chief economist at ADP. “Job changers benefited not only from higher base pay but also from bonuses, overtime and longer working hours.” She added, “Taken together, these factors pushed income growth for job changers to its highest level since March 2024.”

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