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US October ADP Private Payrolls Rise 86,000, Beating Estimates
Summary
- US October ADP nonfarm private payrolls rose by 86,000 from the previous month, beating economists' forecasts.
- Trade, transportation and utilities, education and health services, and leisure and hospitality led job gains, while professional and business services declined for a third straight month.
- All private-sector workers' base pay and total pay rose 3.2% and 4.7% from a year earlier, respectively, lifting workers' income growth to its highest since March 2024.
Forecast Trend Report by Period
US private-sector hiring rose by more than expected last month.
Automatic Data Processing's employment report released on Nov. 4 showed nonfarm private payrolls increased by 86,000 in October from the previous month. That matched September's gain of 86,000 and exceeded economists' forecast of 67,000 by 19,000.
By sector, trade, transportation and utilities led the gains with 39,000 jobs. Education and health services added 28,000, while leisure and hospitality gained 19,000. Professional and business services, by contrast, lost 27,000 jobs, marking a third straight monthly decline.
Annual growth in base pay for all private-sector workers was 3.2%, while total pay rose 4.7% from a year earlier. For workers who stayed in their jobs, base pay increased 3.0% from a year earlier. For those who changed jobs, it rose 4.8%.
"Employers of all sizes are hiring," ADP Chief Economist Nela Richardson said. With bonuses and overtime pay adding to earnings, workers' income growth was the highest since March 2024.
The ADP report is typically released two days before the US Labor Department's employment report from the Bureau of Labor Statistics and is often seen as a preview. Still, it does not always move in the same direction as the government's official figures.
JOON HYOUNG LEE
gilson@bloomingbit.ioCrypto Journalist based in Seoul