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Private-sector employers added 86,000 jobs in October, payroll processor ADP said in its latest monthly report released on Wednesday, a figure that topped economists’ consensus and precedes the U.S. government’s official jobs reading later this week.
ADP reported the October gain was above economists’ estimates of 69,000 jobs. ADP also said the prior month’s payrolls were revised to 86,000. ADP chief economist Nela Richardson said hiring “across employers of all sizes” was driven in part by bonuses, overtime and longer hours as well as higher base pay, and added that “earnings growth for these workers hit its fastest pace since March 2024.”
Which industries drove hiring
Trade, transportation and utilities led job creation in October, adding 39,000 positions, according to ADP. Education and health services contributed 28,000 jobs, while leisure and hospitality added 19,000. Financial activities posted a gain of 15,000 jobs, construction added 13,000, and other services rose by 10,000.
On the downside, ADP reported declines in several sectors. Professional and business services lost 27,000 jobs, natural resources and mining fell by 8,000, information declined by 2,000, and manufacturing shed about 1,000 positions.
Hiring by company size and what comes next
By establishment size, ADP said large companies (500 or more employees) added 24,000 jobs in October. Firms with 50 to 499 employees hired 33,000 workers, and businesses with fewer than 50 employees increased payrolls by 28,000.
The ADP release comes two days before the Labor Department’s closely watched nonfarm payrolls report, which is scheduled for Friday morning and can differ notably from private payroll estimates. Economists surveyed ahead of the government release expected the official data to show an increase of about 65,000 positions for October, following an unexpected loss of 29,000 jobs reported for September; the unemployment rate is forecast to remain near 4.2%.
ADP’s monthly report is one of several private indicators investors and policymakers watch for clues about labor-market momentum and wage pressures. ADP’s methodology and the government’s household and establishment surveys differ, and past months have shown the two series do not always move in lockstep.
ADP provided the payroll figures and the Richardson quotation in its October report released Wednesday; the government’s nonfarm payrolls and unemployment figures are due from the Labor Department on Friday.
