Private Employers Added 86,000 Jobs in October, ADP Says, as Hiring Spread Across More Industries

U.S. businesses added a modest 86,000 jobs in October, payroll processor ADP reported, matching the pace of the prior month while showing signs that hiring is reaching a broader swath of the economy.

The October figure came in above the 75,000 gain that Wall Street economists had forecast, offering a hint of momentum in what remains a sluggish labor market.

"Employers of all sizes were hiring last month, and our data suggests that job-changers were lured by a combination of bonuses, overtime, and more hours in addition to higher base pay," said Nela Richardson, chief economist at ADP.

The ADP tally serves as an early look ahead of the federal government's official employment report, due Friday. Economists expect the Bureau of Labor Statistics data to show an increase of 59,000 jobs for October. The two reports can diverge sharply in any given month, though they tend to move in the same direction over time.

Transportation was a standout in the October data, generating 39,000 new jobs, the sector's largest increase in nearly two years. Healthcare providers once again led overall hiring, extending a pattern that has held for the past few years.

Job gains were also recorded among hotels, restaurants, financial firms and construction companies, evidence that hiring broadened beyond its recent narrow base.

ADP also revised its September estimate downward, putting the increase in private jobs at 86,000, compared with an initially reported 90,000.

The bigger picture remains muted. The U.S. labor market is stuck in a rut: layoffs are historically low, but so is hiring. Since the middle of 2024, the economy has been adding well under 100,000 jobs a month, less than half its historical average, and hiring is unlikely to accelerate sharply in the short term.

On Wall Street, the Dow Jones Industrial Average and S&P 500 were set to rise in Wednesday trading following historic gains by Democrats in U.S. elections.