Employment growth in the U.S. private sector rose more than expected in October while wage growth cooled, as reported by Automatic Data Processing. Private employment advanced by 233,000 jobs in October, significantly higher than the 111,000 increase predicted in a survey compiled by Bloomberg. Additionally, September's job gains were revised upward to 159,000 from an earlier estimate of 143,000. "Even amid hurricane recovery, job growth was strong in October," stated ADP Chief Economist Nela Richardson.
"As we round out the year, hiring in the U.S. is proving to be robust and broadly resilient." Year-over-year wage growth decreased to 6.2% for job changers and to 4.6% for those who remained in their positions, according to the report from ADP. Service-related industries contributed a noteworthy 211,000 jobs in October, with education and health services leading the charge with a 53,000 increase.
The trade, transportation, and utilities sectors added 51,000 jobs, while leisure and hospitality saw an increase of 37,000 jobs. In contrast, the goods-producing sector managed to add only 22,000 jobs during the month, largely propelled by growth in construction. However, the manufacturing sector experienced a decline, reflecting a shift in employment dynamics. The Bureau of Labor Statistics is expected to release data on Friday indicating that the U.S.
economy added 111,000 nonfarm jobs in October, signaling a considerable decline from the 254,000 job increase reported for the previous month, as indicated by a survey compiled by Bloomberg. Additionally, government data released on Tuesday showed a reduction in job openings for September, accompanied by an increase in layoffs.
"This morning's estimate signals that Friday's nonfarm payrolls could be firmer than some fear," Scotiabank indicated in a note. "In other words, it is statistically improbable, but not impossible, that nonfarm payrolls turn up very weak.".