Private Payrolls Show Unexpected Growth in October, ADP Reports
ADP’s report shows that private payrolls added 42,000 jobs in October. The report states that the count nearly doubled the 22,000 jobs many experts had predicted. Last month had fewer private jobs, but this month the numbers grew.
Key Highlights from the ADP Report
• Private companies raised payrolls by 42,000 jobs in October.
• This number beats the expected 22,000 jobs.
• ADP revised September’s numbers; the loss was adjusted from 29,000 jobs to 32,000 jobs.
• Big companies, with 250 or more employees, brought 76,000 jobs in October.
• Small companies, with fewer than 250 employees, lost 34,000 jobs.
Sector Performance and Job Distribution
Job changes varied by sector in October.
• The trade, transportation, and utilities area added 47,000 jobs.
• Education and health services put in 26,000 new roles.
• Financial activities climbed by 11,000 jobs.
• Information services lost 17,000 roles.
• Other sectors lost jobs: professional and business services dropped 15,000, other services fell 13,000, and manufacturing slipped by 3,000 jobs.
Concerns Over Small Business Employment
ADP Chief Economist Nela Richardson spoke about the loss at the small-company level. She pointed out that small businesses help create three out of four U.S. jobs. In October, only large companies added jobs. Richardson said, "Big companies make headlines, but small companies drive hiring. That weakness shows why the recovery remains slow."
Wage Growth Continues Despite Slow Job Gains
Wages grew alongside the small rise in jobs.
• Workers who kept their jobs saw their pay climb by 4.5% year-over-year.
• Those who switched jobs enjoyed a 6.7% pay rise, slightly better than last month.
Richardson noted that the average growth for private jobs now stands at about 60,000 per month in the later part of 2025. ### Impact of Government Shutdown on Labor Market Data
The ADP report usually comes before the government’s own nonfarm payroll numbers by the Bureau of Labor Statistics (BLS). This time, a government shutdown stopped the BLS from gathering data. Experts had expected a drop of 60,000 jobs and a jump in the unemployment rate to 4.5%. This gap now makes other data points more important.
Federal Reserve and Economic Outlook
Officials at the Federal Reserve have shown more worry over the health of the job market. They now focus on it along with inflation. Last week, the Fed lowered its key interest rate by a quarter-point to a range of 3.75%-4% in a bid to keep the economy steady.
More Data to Watch
Since the government will not release its numbers for October, analysts now check other signals:
• Challenger, Gray & Christmas will share their count of announced layoffs on Thursday.
• State-level jobless claims will show recent changes in payrolls.
• The University of Michigan’s consumer sentiment index, coming Friday, will show how people feel about the economy.
• Data from Indeed shows job postings are at their lowest since February 2021, hinting that employers are cautious when hiring.
Even as October’s numbers show gains, the mix of strong and weak areas means the job market still faces challenges. Experts and government officials plan to watch these many signals as they study where the economy might go next.
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