U.S. private-sector employment rose modestly in October, with ADP reporting a gain of 42k jobs, slightly above expectations of 32k. It was the first increase since July, suggesting some stabilization in hiring after months of softness. However, the pace of job creation remains well below levels seen earlier in the year, pointing to a labor market that is cooling gradually rather than collapsing.
Sector data showed 33k new service jobs and 9k in goods production. Large firms (+73k) drove most of the gains. Small (-10k) and medium-sized (-21k) companies continued to shed workers. Wage growth remained steady, with job-stayers up 4.5% yoy and job-changers up 6.7% yoy, both unchanged from September.
Overall, the data suggest hiring is stabilizing at lower levels, aligning with the Fed’s goal of cooling the economy without triggering widespread job losses.
