World Stock Watch

Private Job Creation Sees Strongest Growth in Over a Year

Despite the challenges posed by a devastating storm season in the Southeast and significant labor disruptions, private job creation experienced its highest growth in over a year in October. According to ADP’s latest report, companies hired 233,000 new workers in the month, surpassing expectations and marking the best month for job creation since July 2023.

A Resilient Labor Market

The numbers are a testament to the resilience of the US labor market, which has continued to defy expectations of a slowdown. “Even amid hurricane recovery, job growth was strong in October,” said ADP chief economist Nela Richardson. “As we round out the year, hiring in the US is proving to be robust and broadly resilient.”

Widespread Gains

The growth in job creation was widespread, with leading sectors including education and health services, trade, transportation, and utilities, construction, and leisure and hospitality. Professional and business services also contributed significantly to the total. The only sector to report losses was manufacturing, which was impacted by the Boeing strike.

Large Companies Drive Growth

Job creation was strongly concentrated in companies with 500 or more employees, which added 140,000 of the total. Businesses with fewer than 50 workers were little changed, contributing just 4,000 of the total.

What to Expect from the BLS Report

The ADP report traditionally sets the stage for the more closely watched nonfarm payrolls count from the Bureau of Labor Services. While the two reports can differ substantially, the ADP report suggests that the labor market is holding up well. The BLS report is projected to show growth of just 100,000 and an unemployment rate holding steady at 4.1%.

Key Takeaways

• Private job creation experienced its highest growth in over a year in October, with 233,000 new workers hired.
• The growth in job creation was widespread, with leading sectors including education and health services, trade, transportation, and utilities, construction, and leisure and hospitality.
• Large companies drove the growth, with companies with 500 or more employees adding 140,000 of the total.
• The labor market continues to defy expectations of a slowdown, with the ADP report suggesting that hiring in the US is robust and broadly resilient.