ADP reported Wednesday that private sector job creation surged in October to the highest level in more than a year, despite a devastating storm season across the Southeast that caused severe workforce disruptions.
The payroll processing company said companies hired 233,000 new workers this month, better than September’s upwardly revised estimate of 159,000 and well above the Dow Jones’ forecast of 113,000. ADP said it was the best month for job creation since July 2023.
“Job growth in October remained strong even amid hurricane recovery,” said Nela Richardson, chief economist at ADP. “U.S. hiring is proving to be strong and generally resilient as the year comes to a close. of.”
The figures defy expectations for a slowdown in October Two brutal hurricanes – Helen and Milton – ravaged the Southeast, with Florida and North Carolina hit particularly hard.
The most important thing is, Labor disruption for port workers and boeing company Employment numbers are also expected to be affected, and some economists say the October report will be an anomaly that Fed officials will largely dismiss when they meet next week.
However, the ADP report showed the labor market remained stable. In addition to the increase in hiring, wages are also up 4.6% from a year ago.
Plus, the benefits are wide-ranging. Leading industries include education and health services (53,000), trade, transportation and utilities (51,000), construction, leisure and hospitality (up 37,000 each), and professional and business services (31,000).
Manufacturing was the only industry to report a loss, down 19,000 for the month, as Boeing strike The company has laid off 33,000 employees since September 13.
Job creation was concentrated in companies with 500 or more employees, adding a total of 140,000 people. Companies with fewer than 50 employees saw little change, accounting for only 4,000 of the total.
The ADP report traditionally provides the more closely watched nonfarm payrolls data from the Bureau of Labor Statistics. The report, released on Friday, projected growth of just 100,000 and the unemployment rate steady at 4.1%.
However, there can be significant differences in reports from ADP and BLS, which includes government workers. A report from the U.S. Bureau of Labor Statistics shows Private employment increased by 223,000 September and Total employment increased by 254,000.
Correction: Nonfarm payrolls data comes from the Bureau of Labor Statistics. An earlier version misstated the agency’s name.
