Private companies created 86,000 jobs in October, slightly more than expected, according to ADP

Private sector job growth remained stable in October, with gains spread across sectors, as the labor market showed further signs of stabilization, ADP reported Wednesday.

The payroll processing company said businesses added 86,000 jobs in the month, the same as the downwardly revised total for September and slightly above the Dow Jones estimate of 75,000.

Employment gains occurred mainly in the services sector.

Commerce, transportation and utilities led with 39,000 new jobs, while education and health services added 28,000, and leisure and hospitality contributed 19,000. Other sectors showing gains included financial activities (15,000), construction (13,000) and other services (10,000).

However, some gains were offset by a decline of 27,000 in professional and business services and a loss of 8,000 in natural resources and mining. Information services, a sector potentially affected by the development of artificial intelligence, lost 2,000 jobs.

Wages continued to post gains, particularly for those changing jobs: these workers saw an annual gain of 4.8%. A report released Tuesday by the Bureau of Labor Statistics showed that the number of people leaving their jobs, a sign of labor market mobility, reached its highest level since March 2025.

Overall, workers saw their base pay increase by 3.2%, while their gross pay increased by 4.7% annually. The wages of those who remain on the job increased by 3%.

“Employers of all sizes hired last month, and our data suggests job changers were attracted to a
combination of bonuses, overtime and overtime on top of a higher base salary,” said Nela Richardson, ADP chief economist. “Overall, income growth for these workers reached its fastest pace since March 2024.”

Companies with between 50 and 499 workers created 33,000 jobs. Large companies added 24,000, while small businesses increased their workforce by 28,000.

The ADP report serves as a precursor to the BLS nonfarm payroll count that will be released Friday.

Economists surveyed by Dow Jones expect the BLS report for October to show a gain of 59,000 after September’s modest growth of 29,000.