ADP: US Private Employers Added 86,000 Jobs in October

US private-sector employers added 86,000 jobs in October, payroll processor ADP reported Wednesday, beating economists' forecasts of 69,000 and matching the prior month's revised gain of 86,000.

The report lands two days before the Labor Department's nonfarm payrolls (the government's official monthly jobs count) and the two can differ notably.

What did workers gain besides jobs?

Pay, and noticeably so. ADP chief economist Nela Richardson said employers of all sizes hired last month, and that job-changers were "lured by a combination of bonuses, overtime, and more hours in addition to higher base pay."

Richardson added: "Taken together, earnings growth for these workers hit its fastest pace since March 2024."

Takeaway: if you switched jobs in October, the data says you likely got paid more for it.

Which industries are hiring?

Services carried the month. Sector-level gains in October:

• Trade, transportation and utilities: +39,000 (largest gain)
• Education and health services: +28,000
• Leisure and hospitality: +19,000
• Financial activities: +15,000
• Construction: +13,000
• Other services: +10,000

Losses concentrated in white-collar and goods-producing sectors. Professional and business services shed 27,000 jobs, natural resources and mining lost 8,000, information lost 2,000 and manufacturing dropped 1,000.

Takeaway: logistics, healthcare and hospitality are pulling workers in; corporate services roles are being cut.

How did hiring split by company size?

Mid-sized firms led. Businesses with 50 to 499 employees added 33,000 jobs. Establishments with fewer than 50 employees gained 28,000, and large businesses (500 or more employees) added 24,000.

Takeaway: demand for labor was broad-based, with no size band dominating.

What comes next?

The Labor Department's nonfarm payrolls report arrives Friday morning. Economists expect it to show a 65,000-position increase, below September's unexpected loss of 29,000. The unemployment rate is expected to hold at 4.2%.

Takeaway: ADP points to a stabilizing, if modest, labor market — Friday's government data will confirm whether the strength in October hiring holds.