US ADP private sector employment gains in October fell short of expectations, with an addition of 113k jobs as opposed to the anticipated 135k. A breakdown by industry shows a modest increase of 6k in goods-producing jobs, while service sector added 107k. When considering the size of establishments, small firms contributed 19k jobs, medium-sized businesses accounted for 78k, and large enterprises added 18k.
A notable trend emerged in the wage segment. Employees who remained in their current positions reported a year-over-year pay growth of 5.7%, marking the slowest rate since October 2021. On the other hand, individuals who switched jobs experienced an 8.4% rise in wages, which is the least impressive figure since July 2021.
Nela Richardson, ADP’s Chief Economist stated, “October didn’t see a particular industry taking the lead in hiring. Moreover, the significant wage hikes we observed in the post-pandemic phase seem to be waning.”
She further added, “The data from October offers a comprehensive view of the employment sector. Although there’s a deceleration in the job market, it’s still adequately robust to sustain vigorous consumer expenditure.”
