The National Employment Report released by Automatic Data Processing (ADP) in the United States on Wednesday, October 30, showed that private sector employment in the country added 233,000 jobs in October, significantly surpassing economists’ expectations.
According to the latest data from the payroll processing company ADP, US private companies hired 233,000 employees in October, higher than the revised figure of 159,000 in September and well above the estimated 113,000 by Dow Jones & Company. ADP stated that this is the highest number of job additions since July 2023.
Nela Richardson, Chief Economist at ADP, stated that “even during the hurricane recovery period, job growth in October remained strong. As the year is coming to an end, it proves that hiring activities in the United States are robust and generally flexible.”
The hurricanes Richardson referred to are Hurricane “Helene” and “Milton” that struck the southeastern United States at the end of September and early October, causing significant losses, with Florida and North Carolina being particularly hard hit.
In October, hiring increased across various industries in the United States. Education and health services led with an increase of 53,000 jobs, followed by trade, transportation, and utilities with an increase of 51,000 jobs, while construction, leisure, and hospitality each added 37,000 jobs, and professional and business services increased by 31,000 jobs.
Manufacturing was the only industry that saw a decline in employment, shedding 19,000 jobs in October due to a strike by 33,000 Boeing workers since September 13.
Regionally, the majority of new job opportunities were concentrated in the southern United States, with an increase of 77,000 positions. The Midwest added 63,000 jobs, while the Northeast and West each saw an increase of 48,000 and 44,000 job positions, respectively.
In terms of business size, large companies with more than 500 employees led the hiring frenzy, adding 140,000 jobs, while small companies with fewer than 50 employees saw minimal changes, only hiring 4,000 people.
ADP’s report also indicated that wages increased by 4.6% compared to the same period last year.
ADP’s report is released a day ahead of the more highly anticipated Labor Department nonfarm payrolls report. Economists surveyed by the London Stock Exchange Group (LSEG) expect this government report to show an increase of 115,000 jobs in the US economy in October, with an unemployment rate stable at 4.1%. Though at times there may be significant differences in the statistical data provided by these two reports, the ADP report serves as a precursor to the government report.