Private Sector Added 42,000 Jobs in October, Reversing September’s Losses

The private sector added 42,000 jobs in October, with the trade, transportation and utilities industry leading the way, ADP said Wednesday (Nov. 5).

That industry was among five that added jobs during the month, while another five industries shed jobs, the human resources and payroll solution provider said in a Wednesday press release.

The month’s results marked a turnaround from September, when the private sector shed 32,000 jobs.

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

Year-over-year pay growth was flat compared to the previous month, with job-stayers at 4.5% and job-changers at 6.7%, according to the release.

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

The Conference Board reported Oct. 28 that in September, consumers’ assessment of current business and labor market conditions improved by 1.8 points, while their short-term outlook for income, business and labor market conditions declined by 2.9 points.

“Consumers’ view of current business conditions inched upward, while their appraisal of current job availability improved for the first time since December 2024,” Stephanie Guichard, senior economist, global indicators, at The Conference Board, said in a press release.

The Federal Reserve’s Beige Book, released in October, found that labor conditions were mostly steady. However, while five districts reported “unchanged” labor conditions, four described a worsening trend, often tied to “layoffs and attrition.”

Among the 10 industries tracked by ADP, five added jobs and five shed jobs in October, according to the company’s Wednesday press release.

The industries that grew during the month included trade, transportation and utilities (47,000); education and health services (26,000); financial activities (11,000); natural resources and mining (7,000); and construction (5,000).

The five industries that shrank in October included information, which lost 17,000 jobs; professional and business services, which lost 15,000; other services, which lost 13,000; leisure and hospitality, which lost 6,000; and manufacturing, which lost 3,000.

In terms of establishment size, only large establishments with 500 or more employees added jobs during October. They added 73,000 jobs.

Small businesses with between one and 49 employees cut 10,000 jobs, while medium establishments with between 50 and 499 employees cut 21,000.