Private job creation surged to its highest level in over a year in October, as reported by ADP on Wednesday, despite a severe storm season in the Southeast and significant labor disruptions. The payrolls processing firm revealed that companies added 233,000 new workers during the month, surpassing the upwardly revised 159,000 in September and well above the Dow Jones estimate of 113,000. ADP noted that this was the strongest month for job creation since July 2023.
ADP’s chief economist, Nela Richardson, stated, “Even amid hurricane recovery, job growth was strong in October.” She added, “As we round out the year, hiring in the U.S. is proving to be robust and broadly resilient.” These numbers defied expectations of a slowdown in October following the impact of hurricanes Helene and Milton on the Southeast, particularly affecting Florida and North Carolina.
Despite predictions of labor disruptions affecting payrolls due to port workers and Boeing issues, the ADP report indicated that the labor market remained resilient. Alongside increased hiring, wages also saw a 4.6% growth from a year ago. Job gains were widespread, with notable increases in sectors such as education and health services, trade, transportation and utilities, construction, leisure and hospitality, and professional and business services.
However, the manufacturing sector experienced losses, shedding 19,000 jobs in the month, primarily due to the ongoing Boeing strike. Job creation was predominantly seen in companies with 500 or more employees, contributing 140,000 to the total. Businesses with fewer than 50 workers saw minimal change, adding just 4,000 jobs.
The ADP report typically precedes the more anticipated nonfarm payrolls count from the Bureau of Labor Statistics, expected to be released on Friday. The upcoming report is projected to show a growth of 100,000 jobs and an unchanged unemployment rate of 4.1%. It is important to note that the ADP and BLS reports may differ significantly, as the latter includes government workers. In September, the BLS report indicated private job gains of 223,000 and a total payrolls growth of 254,000.
Correction: The nonfarm payrolls count is from the Bureau of Labor Statistics. An earlier version misstated the agency’s name.
