US private employers add 42,000 jobs in October as ADP report signals rebound

Private-sector employment in the United States rose modestly in October, with employers adding 42,000 jobs, according to the latest ADP National Employment Report released on Wednesday.

The figures, compiled by ADP Research in collaboration with the Stanford Digital Economy Lab, offered a faint sign of resilience in the labor market even as broader economic pressures persisted.

However, it was a rebound following a decline of 29,000 in September.

Markets had expected an increase of around 32,000 jobs, which would have marked the sixth sub-100,000 reading in the last seven months.

The Dow Jones consensus estimate showed a gain of 22,000.

The October data, therefore, represented a slight upside surprise, though still well below early-year hiring levels.

“Private employers added jobs in October for the first time since July, but hiring was modest relative to what we reported earlier this year,” said Dr. Nela Richardson, chief economist, ADP.

“Meanwhile, pay growth has been largely flat for more than a year, indicating that shifts in supply and demand are balanced.”

Job growth led by large firms and healthcare sector

Job creation in October was concentrated among large companies, with firms employing 250 or more workers adding 76,000 jobs, while small and medium-sized businesses together shed 34,000.

The strongest gains were recorded in trade, transportation, and utilities, which together added 47,000 positions, followed by education and health services with 26,000. Financial activities also contributed, adding 11,000 jobs.

Conversely, several key industries continued to shed positions.

Information services lost 17,000 jobs despite ongoing enthusiasm around artificial intelligence.

Professional and business services fell by 15,000, while manufacturing slipped by 3,000—a continuing sign of weakness in a sector that has struggled despite President Donald Trump’s tariffs intended to revive US factory employment.

Leisure and hospitality, along with other services, also posted declines.

Wage growth steady as pay pressures level off

Wage growth continued at a steady pace. Year-over-year pay for workers who stayed in their roles increased 4.5%, unchanged from September.

Job switchers saw a 6.7% annual increase, marginally higher than the prior month.

ADP’s Pay Insights, based on over 15 million monthly observations, suggest that pay pressures have leveled off, reflecting a balance between labor demand and availability.

According to ADP data, job growth has averaged around 60,000 a month this year, but hiring momentum has slowed sharply in recent months.

Shutdown halts official data, putting ADP in focus

Normally, the ADP report serves as a preview to the Bureau of Labor Statistics’ (BLS) nonfarm payrolls report released later in the week.

However, with the ongoing government shutdown halting official data collection, the ADP figures have taken on greater importance for economists and investors seeking insight into labor market trends.

Wall Street had been anticipating that the BLS report would show a decline of about 60,000 jobs and a rise in unemployment to 4.5%.

With that data unavailable, attention has turned to private estimates such as ADP’s, as well as other indicators due this week.

Challenger, Gray & Christmas will release its monthly job cuts report on Thursday, while state-level jobless claims will provide further signals of hiring activity.

On Friday, the University of Michigan is set to publish its consumer sentiment index, offering another gauge of economic confidence.

Despite the uncertainty, analysts said the modest payroll gain and steady pay growth suggest that the labor market remains resilient for now, even as the broader economy grapples with policy paralysis and weakening demand.