Private companies in the U.S. increased payrolls by 86,000 jobs in October, according to ADP's latest report, maintaining the hiring pace from the previous month. This figure slightly exceeded economists' forecasts of 75,000 new jobs, signaling steady employment growth. Notably, job gains were concentrated in service sectors, with trade, transportation, and utilities leading by adding 39,000 positions, followed by strong contributions from education, health services, and leisure and hospitality.

Although most sectors expanded employment, some areas experienced declines. Professional and business services cut 27,000 jobs, natural resources and mining lost 8,000, and the information sector, potentially influenced by automation and AI developments, trimmed about 2,000 positions. On the other hand, financial activities, construction, and other services showed positive job increases, illustrating a mixed but generally stable labor market environment going into the final months of 2026.

Wages showed notable growth, especially for workers who switched jobs, with pay in this group climbing by 4.8% annually, the fastest increase since March 2024. Overall, base wages rose 3.2%, while gross pay, which includes bonuses and overtime, increased nearly 4.7%. This uptick in earnings aligns with rising quit rates, marking a high point in labor mobility since March 2025 and indicating that employers are competing to retain and attract talent by offering better compensation packages.

ADP’s report, released on November 4, serves as a prelude to the official government nonfarm payrolls data expected on November 6. Economists anticipate that the Bureau of Labor Statistics will confirm continued, though modest, job growth of about 59,000 in October. Companies of various sizes contributed to the gains, with medium-sized businesses showing the largest increase in employment, followed by small and large firms, suggesting broad-based demand for labor at multiple levels of the economy.