Private sector companies added 86,000 jobs in October, a figure that exceeded economists' expectations, according to the latest report from payroll processing firm ADP released on Wednesday. This number is an increase from the revised 86,000 payrolls recorded in the prior month.
"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," said ADP chief economist Nela Richardson. "Taken together, earnings growth for these workers hit its fastest pace since March 2024."
Trade, transportation, and utilities led the job creation in October, adding 39,000 positions. The education and health services sectors collectively added 28,000 jobs, while leisure and hospitality saw an increase of 19,000 positions.
Other industries also contributed to the job growth. Financial activities added 15,000 jobs, construction added 13,000, and other services gained 10,000 positions. However, some sectors experienced job losses. Professional and business services lost 27,000 jobs, and natural resources and mining lost 8,000. The information sector lost 2,000 jobs, and manufacturing lost 1,000.
Regarding business size, large companies with 500 or more employees gained 24,000 jobs in October. Businesses with 50 to 499 employees added 33,000 jobs, and establishments with fewer than 50 employees saw a gain of 28,000 jobs.
The ADP report is released ahead of the Labor Department's official nonfarm payrolls report, which is scheduled for Friday morning and can sometimes differ from ADP's findings. The government is expected to report an increase of 65,000 positions for October, a rebound from the 29,000 loss reported in September. The unemployment rate is anticipated to remain at 4.2%.