U.S. private employers added 86,000 jobs in October, exceeding economists’ expectations, according to a report released Wednesday by payroll processing firm ADP.
The figure surpassed economists’ forecasts of 69,000 new jobs and matched September’s revised total of 86,000.
The latest numbers suggest that private-sector hiring remained steady in October, with businesses of all sizes adding workers.
“Employers of all sizes were hiring last month,” said ADP chief economist Nela Richardson.
Richardson said workers who changed jobs benefited from bonuses, overtime, additional working hours, and higher base pay. Earnings growth among these workers reached its fastest pace since March 2024.
Trade, transportation, and utilities led job creation in October, adding 39,000 positions.
Education and health services followed with 28,000 new jobs, while leisure and hospitality added 19,000.
Financial activities contributed another 15,000 jobs, construction added 13,000, and other services gained 10,000.
However, several industries experienced job losses during the month.
Professional and business services recorded the largest decline, shedding 27,000 positions. Natural resources and mining lost 8,000 jobs, while the information sector lost 2,000.
Manufacturing employment also declined slightly, with the sector losing 1,000 positions.
The report showed that hiring was spread across businesses of different sizes.
Medium-sized businesses with 50 to 499 employees added 33,000 jobs, while smaller companies with fewer than 50 workers gained 28,000.
Large businesses employing at least 500 workers accounted for another 24,000 jobs.
The ADP report comes ahead of the Labor Department’s official employment report, scheduled for release Friday.
Economists expect the government report to show an increase of 65,000 jobs in October, following an unexpected loss of 29,000 positions in September.
The unemployment rate is expected to remain unchanged at 4.2%.
ADP’s figures measure private-sector employment and can differ significantly from the government’s broader nonfarm payroll numbers.