According to the ADP report released on Wednesday, private-sector employment in the U.S. added 86,000 jobs in October, matching the revised figure for September and exceeding the Dow Jones estimate of 75,000.
The majority of job gains were concentrated in the service sector, with trade, transportation, and utilities contributing 39,000 jobs, followed by education and health services with 28,000, and leisure and hospitality adding 19,000.
However, these gains were partially offset by losses in professional and business services, which saw a decline of 27,000 jobs, and a reduction of 8,000 jobs in natural resources and mining. The information services sector also experienced a slight decrease of 2,000 jobs, potentially linked to the ongoing developments in artificial intelligence.
Salary growth was notable, particularly for job-changers, who experienced a 4.8% annual increase in earnings. Overall, base pay rose by 3.2%, while gross pay saw a 4.7% annual increase. ADP's chief economist, Nela Richardson, highlighted that employers across various sizes were actively hiring, with job-changers attracted by bonuses and increased hours.
Companies with 50 to 499 employees added 33,000 jobs, while large businesses contributed 24,000 and small firms added 28,000. This report serves as a precursor to the Bureau of Labor Statistics' nonfarm payrolls count, which is anticipated to show a gain of 59,000 jobs for October, following a modest increase of 29,000 in September