U.S. Private Sector Job Growth Exceeds Expectations in October

Investing.com — Private employers in the U.S. added significantly more jobs than anticipated in October, indicating strength in the labor market, according to a report from payrolls processor ADP on Wednesday.

The ADP Employment report revealed that private payrolls increased by 233,000, revising the previous total for September up to 159,000. Economists had predicted a figure of 110,000.

This marks the highest level of job creation since July 2023, as the economy continues to recover from hurricane impacts. Notably, manufacturing was the only sector to experience job losses.

“Even amid hurricane recovery, job growth was strong in October,” stated Nela Richardson, chief economist at ADP. “As we approach the end of the year, hiring in the U.S. proves to be robust and broadly resilient.”

Annual pay increases for those staying in their jobs dipped to 4.6%, continuing a two-year decline. Meanwhile, pay growth for job changers slowed to 6.2%.

Traders anticipate a fresh update on labor market strength this Friday with the forthcoming nonfarm payrolls report scheduled for release.