US private employers added 86,000 jobs in October, beating economists’ expectations of 69,000, according to the ADP National Employment Report released on Wednesday, November 4.
The report, produced by ADP Research with the Stanford Digital Economy Lab from payroll data covering more than 26 million US private-sector workers, landed a day after Democrats swept control of Congress in the midterm elections and two days before the Bureau of Labor Statistics publishes its official October employment report on Friday.
Where the jobs came from
Services accounted for almost all of the gain, adding 82,000 jobs, while goods-producing industries added just 4,000. Trade, transportation and utilities added 39,000 jobs, education and health services gained 28,000, and financial activities added 15,000. But professional and business services lost 27,000 jobs for the third consecutive month.
September’s figure was revised down from 90,000 to 86,000, meaning October matched the prior month’s revised gain. ADP chief economist Nela Richardson said employers of all sizes expanded their workforces last month.
Pay gains for job switchers
Pay gains were little changed overall, with base pay for private-sector workers up 3.2 per cent from a year earlier and gross pay up 4.7 per cent, according to ADP Pay Insights. Workers who switched jobs received their fastest earnings growth since March 2024 when bonuses, overtime and extra hours were included. Economists expect Friday’s official report to show 65,000 total nonfarm jobs added, with unemployment unchanged at 4.2 per cent.
The uneven picture underneath
The headline beat hides an uneven labour market. Trade, transportation and utilities added 39,000 jobs and education and health services gained 28,000, but professional and business services lost 27,000 jobs for the third consecutive month, a worrying sign for a sector that includes many higher-paying roles in consulting, accounting, legal and technical work. Higher-income households account for a disproportionate share of consumer spending, so continued weakness there could matter for discretionary spending even while overall hiring looks solid. The encouraging news is on pay: job-changers saw their fastest earnings growth since March 2024 once bonuses, overtime and extra hours were included, suggesting employers are still willing to pay for the workers they need.
