In a recent report released by ADP Research, private sector employment in the United States saw a modest increase of 42,000 jobs in October, marking a rebound from two months of stagnant hiring. This adjustment signifies the first net job gain since July and comes amid a year of mixed employment trends. The report, which utilizes anonymized payroll data from over 26 million employees and extensive pay insights from 15 million monthly observations, paints a detailed picture of current labor market conditions.
Dr. Nela Richardson, ADP’s chief economist, commented on the findings, noting that while the job addition reflects a positive shift, it remains lower compared to the hiring figures earlier this year. The report highlighted a balance in supply and demand within the labor market, indicated by stable pay growth, which remained flat at 4.5% year-over-year.
Employment Summary
The employment figures revealed:
- Service-Providing Sector: Gained 33,000 jobs.
- Trade, Transportation, and Utilities: Largest contributor with a gain of 47,000 jobs.
- Education and Health Services: Added 26,000 jobs.
- Goods-Producing Sector: Increased by 9,000 jobs, although the manufacturing industry saw a slight decline of 3,000 jobs.
In contrast, several sectors experienced job losses:
- Professional and Business Services: Down by 15,000.
- Information: Decreased by 17,000.
- Leisure and Hospitality: Lost 6,000 jobs.
Regional Trends
From a regional perspective, the employment growth also varied significantly. The West saw substantial job additions, particularly in the Pacific region, which accounted for 37,000 new jobs. The Northeast faced a decline, losing 12,000 jobs overall, with the Mid-Atlantic region contributing to a significant drop of 20,000.
Firm Size Impact
Analyzing employment by establishment size, large firms, categorized as having 500 or more employees, were the primary drivers of job creation, contributing a net increase of 73,000 positions. However, small establishments reported a loss of 10,000 jobs, while medium-sized firms also experienced declines.
Pay Growth Insights
In terms of compensation, pay growth statistics remained steady from the previous month:
- Job-Stayers: Average annual pay growth stood at 4.5%.
- Job-Changers: A notable increase, averaging 6.7% for those who switched employers.
Breaking down pay growth by industry revealed varying results, with construction reporting an annual increase of 4.5%, while financial activities led with a 5.2% rise.
Overall, the October ADP National Employment Report reflects a cautious optimism within the U.S. labor market, underscoring modest growth in job creation and stable wage increases amidst ongoing economic adjustments. The next report is anticipated on December 3, 2025, offering further insights into the evolving employment landscape.
