Investing.com -- Private employers in the U.S. added far more roles than forecast in October, pointing to strength in the labor market according to a report from payrolls processor ADP on Wednesday.
The ADP Employment report showed that private payrolls rose by 233,000, from an upwardly-revised total of 159,000 in September. Economists had seen the figure at 110,000.
It was the highest level of job creation since July 2023 as the economy worked through hurricane recovery. Manufacturing was the only sector to shed jobs.
“Even amid hurricane recovery, job growth was strong in October,” said Nela Richardson, chief economist, ADP. “As we round out the year, hiring in the U.S. is proving to be robust and broadly resilient.”
Annual pay gains for job-stayers dipped to 4.6%, continuing a two-year slowdown. For job changers, pay gains slowed to 6.2%.
Traders will get a fresh update on the strength of the U.S. labor market on Friday, when the all-important monthly nonfarm payrolls report is scheduled to be released.