The private sector saw the addition of 113,000 jobs in October, according to the ADP National Employment Report
Additionally, there was a notable year-over-year pay growth of 5.7%, drawing insights from payroll data of over 25 million U.S. employees.
“No single industry dominated hiring this month, and big post-pandemic pay increases seem to be behind us,” said Nela Richardson, ADP chief economist. “In all, October's numbers paint a well-rounded jobs picture. And while the labor market has slowed, it's still enough to support strong consumer spending.”
While the leisure and hospitality sector had been leading in post-pandemic job recovery, last month saw education and health care taking the top spot as the primary job creators. The service-providing sector added 107,000 jobs, and the goods-producing industry saw an increase of 6,000 jobs.
The South and West regions showed a robust increase, with 64,000 and 46,000 new jobs, respectively. In contrast, the Midwest experienced a decline, losing 13,000 jobs.
Medium-sized establishments (50-249 employees) saw the most significant job increase, adding 78,000 positions. Small establishments added 19,000, while large establishments brought in 18,000 new jobs.
Although job-stayers reported a 5.7% year-over-year pay increase in October, this growth is the slowest since October 2021. Job changers saw an 8.4% pay hike, the smallest increase since July 2021.
The September ADP National Employment Report, which showed 89,000 jobs added, remains unchanged after a review.
It's unclear how much of a predictor the numbers are, though, because in September, when the Bureau of Labor Statistics released its numbers, which includes government jobs, the economy added 336,000 jobs. The Bureau of Labor Statistics will release its October numbers on Friday.
