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Private companies added 86,000 jobs in October, slightly higher than expected, ADP says

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In short

The monthly payroll figures topped the Dow Jones projection of 75,000, matching a downwardly revised total from the previous month. Mid-sized firms accounted for the largest share of the net gain, creating 33,000 positions, while service industries led overall industry expansion. However, contractions in sectors like natural resources and professional services tempered the broader growth. Wage momentum remained resilient, with gross pay climbing 4.7% alongside higher bonuses and overtime hours.

Key points

  • Mid-sized employers led the hiring wave by adding 33,000 workers to their payrolls.: Mid-sized employers led the hiring wave by adding 33,000 workers to their payrolls.
  • Overall compensation rose as employees experienced a 3.2% rise in base pay and a 4.7% gro…: Overall compensation rose as employees experienced a 3.2% rise in base pay and a 4.7% gross pay expansion.
  • Job losses in mining, information, and professional services partially offset solid gains…: Job losses in mining, information, and professional services partially offset solid gains in education, health, and hospitality.

Sources checked by our analysis pipeline: 1

Private-sector job growth held steady in October, with gains spread across sectors, as the labor market showed fresh signs of stabilization, ADP reported Wednesday.

The payrolls processing firm said companies added 86,000 jobs during the month, the same as the downwardly revised total for September and slightly ahead of the Dow Jones estimate for 75,000.

Employment gains came mainly in the service sector.

Trade, 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 of the 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 impacted by the artificial intelligence build-out, lost 2,000 jobs.

Salaries continued to show gains, particularly for those changing jobs — those workers saw a 4.8% annual gain. A report Tuesday from the Bureau of Labor Statistics showed that the number of people quitting their job, a sign of labor…

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