private sector job growth was held steady in October, with gains spread across sectors, as the labor market showed fresh signs of stabilization, ADP reported Wednesday.
The payroll processing company said companies added 86,000 jobs during the month, equaling the downwardly revised total for September and slightly ahead of the Dow Jones estimate of 75,000.
Employment gains came mainly in the service sector.
Trade, transport and utilities led with 39,000 new jobs, while education and health services added 28,000, and leisure and hospitality contributed 19,000. Other sectors showing gains include financial activities (15,000), construction (13,000) and other services (10,000).
However, some of these gains were offset by a decrease of 27,000 in professional and business services and a loss of 8,000 in natural resources and mining. Information services, a sector potentially affected by the development of artificial intelligence, lost 2,000 jobs.
Salaries continue to show gains, especially for those who change jobs – these workers have an annual gain of 4.8%. Tuesday’s report from the Bureau of Labor Statistics showed that the number of people who quit the job, a sign of labor market mobility, reached the highest level since March 2025.
Workers overall saw a 3.2% base gain, while gross wages increased 4.7% year over year. Pay for those who remain employed increases by 3%.
“Employers of all sizes were hiring last month, and our data shows that job changers are being enticed by
a combination of bonuses, overtime, and other hours in addition to higher base pay,” said ADP chief economist Nela Richardson.
Companies with between 50 and 499 workers added 33,000 jobs. Large businesses added 24,000, while small companies added 28,000 rolls.
The ADP report is a precursor to the BLS nonfarm payrolls count that will be released on Friday.
Economists surveyed by Dow Jones are looking for the BLS report for October to show a gain of 59,000 after September’s 29,000 growth.