Private-job creation surged to its highest level in over a year in October, as reported by ADP despite facing major challenges like the aftermath of Hurricane Helene and Milton and labor strikes in the Southeast. The payrolls processing firm revealed that companies added 233,000 new workers during the month, surpassing the Dow Jones estimate of 113,000 and marking the strongest month for job creation since July 2023.
Nela Richardson, the chief economist at ADP, emphasized the resilience of the U.S. labor market, stating, “Even amid hurricane recovery, job growth was strong in October.” The report also highlighted a 4.6% increase in wages from a year ago, indicating positive momentum in the economy.
Various sectors experienced growth, with education and health services, trade, transportation and utilities, construction, leisure and hospitality, and professional and business services leading the way. However, manufacturing saw a decline of 19,000 jobs due to the ongoing Boeing strike affecting 33,000 workers since September.
Large enterprises with 500 or more employees were responsible for adding 140,000 jobs, while smaller businesses with fewer than 50 workers only contributed 4,000 to the total. The ADP report sets the stage for the highly anticipated nonfarm payrolls count from the Bureau of Labor Services, expected to be released on Friday.
Economists are now closely watching for the BLS report, which is projected to show a growth of 100,000 jobs and maintain the unemployment rate at 4.1%. The discrepancy between ADP and BLS reports, which include government workers, emphasizes the complexity of analyzing labor market data.
Overall, the robust job creation in October signals positive momentum in the U.S. economy despite external challenges. The data is crucial for policymakers, businesses, and consumers to gauge the health of the labor market and its broader implications on economic growth.
