Private Employers Added 86,000 Jobs in October, ADP Says

Private employers in the United States added 86,000 jobs in October, according to a report released Wednesday by the payroll processing company ADP. The figure was higher than economists had expected, CNBC reported.

The numbers

Economists surveyed by Dow Jones had forecast a gain of about 75,000 jobs, according to CNBC. ADP’s report is based on anonymized payroll data from employers that use its services, and it often differs from the government’s official count.

Why it matters

The labor market has cooled over the past year. Monthly job gains have slowed compared with the strong pace seen after the pandemic, and some employers have reduced hiring as they wait for more clarity on interest rates, tariffs and consumer demand.

A modest but steady increase suggests that companies are still adding workers, though at a slower rate than in previous years.

What comes next

The Bureau of Labor Statistics is scheduled to release its official employment report for October on Friday, Nov. 6. That report includes both private and government jobs, along with the unemployment rate and average hourly earnings.

Economists will look at whether the government’s figures confirm the ADP trend. The two reports frequently diverge because they use different methods and samples.

The Federal Reserve

The Fed held its benchmark interest rate in a range of 3.75 percent to 4 percent at its Oct. 28 meeting, according to its policy statement. Officials are watching job growth and inflation closely as they decide whether to change rates at their next meeting on Dec. 8 and 9.

Stronger hiring can make the Fed more cautious about cutting rates, especially if wage growth adds to inflation pressures. Weaker hiring can increase pressure to lower borrowing costs.

Political backdrop

The report arrived a day after midterm elections in which voters across the country cited the economy and cost of living as top concerns, according to exit polling reported by several outlets. Democrats, who won control of Congress, campaigned heavily on prices and affordability.

How the job market performs over the next year is likely to shape the debate leading into the 2028 presidential election.

Sources: Associated Press, CNBC, Federal Reserve, ADP.