Private Employers Added 86,000 Jobs in October, ADP Reports, Topping Forecasts
Private employers added 86,000 jobs in October, beating the 69,000 gain economists polled by Reuters had expected, according to the ADP National Employment Report. Services drove the gain, while professional and business services lost jobs for a third straight month.
Private employers added 86,000 jobs in October, beating the gain of 69,000 that economists polled by Reuters had expected, according to the ADP National Employment Report released Wednesday. September’s gain was revised down to 86,000 from a previously reported 90,000, leaving hiring steady for a second month.
The report, developed by ADP with the Stanford Digital Economy Lab, landed two days before the Bureau of Labor Statistics publishes its official October employment report on Friday. Reuters reported that ADP has been a poor gauge of the BLS private payrolls estimate.
Services drove the gain
Services accounted for most of the hiring. Trade, transportation and utilities added 39,000 jobs, education and health services added 28,000, and leisure and hospitality added 19,000, according to Sharecast’s account of the report. Mid-sized firms added 33,000 jobs, small businesses added 28,000, and large companies added 24,000.

The weak spot was professional and business services, which shed 27,000 jobs for a third straight month. ADP chief economist Nela Richardson said pay growth for employees changing jobs accelerated to its fastest pace since March 2024, supported by higher salaries, bonuses, overtime payments and longer working hours, Sharecast reported.

Services survey cooled a little
A separate survey pointed the same way. The ISM Services Purchasing Managers Index for October came in at 54.5, down from 54.9 a month earlier and below the 54.8 estimate, according to FXStreet. Within the survey, the employment part rose, while new orders and prices paid declined but stayed in expansion territory. A reading above 50 signals growth.

For Friday’s official report, a Reuters survey of economists expects private payrolls to have risen by 64,000 in October after a 46,000 gain in September, with total nonfarm payrolls up 65,000 after 29,000 and the unemployment rate unchanged at 4.2 percent.
Reporting based on coverage by Reuters, Sharecast, and FXStreet.