U.S. Private Sector Employment Increases By 133,000 Jobs In October, Less Than Expected
Payroll processor ADP released a report on Wednesday showing private sector employment in the U.S. increased by less than expected in the month of October.
The report said private sector employment climbed by 113,000 jobs in October after rising by 89,000 jobs in September. Economists had expected employment to jump by 150,000 jobs.
ADP said the leisure and hospitality sector, which led the post-pandemic job recovery, added 17,000 jobs during the month.
However, the industry ceded its place as the top job creator to the education and healthcare, with employment in the sector rising by 45,000 jobs.
Employment in the trade, transportation and utilities and financial activities sectors also rose by 35,000 jobs and 21,000 jobs, respectively, while employment in the professional and business services sector dipped by 10,000 jobs.
The report also said the goods-producing sector added 6,000 jobs, with modest increases in employment in the construction and manufacturing sectors partly offset by a slight drop in employment in the natural resources and mining sector.
ADP also said job-stayers reported a 5.7 percent year-over-year pay increase in October, the slowest pace of growth since October 2021. Pay growth for job-changers was 8.4 percent, the smallest increase since July 2021.
“No single industry dominated hiring this month, and big post-pandemic pay increases seem to be behind us,” said ADP chief economist Nela Richardson.
“In all, October’s numbers paint a well-rounded jobs picture,” she added. “And while the labor market has slowed, it’s still enough to support strong consumer spending.”
On Friday, the Labor Department is scheduled to release its more closely watched report on employment in the month of October.
Economists currently expected employment to increase by 180,000 jobs in October after surging by 336,000 jobs in September. The unemployment rate is expected to remain at 3.8 percent.
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