Private Employment Climbed More Than Expected in October, New Data Shows

Private sector jobs rose slightly more than expected in October, according to the latest data from ADP. Overall, companies added 86,000 jobs, compared to the 75,000 expected by the Dow Jones consensus.

ADP said that "hiring showed solid growth for a second month and pay gains were steady," but noted there were "weak spots," as "professional and business services lost jobs for the third straight month."

"Employers of all sizes were hiring last month, and our data suggests that job-changers were lured by a combination of bonuses, overtime, and more hours in addition to higher base pay. Taken together, earnings growth for these workers hit its fastest pace since March 2024," said Dr. Nela Richardson, ADP's Chief Economist.

Trade, transportation and utilities gained some 39,000 new roles. Education and health services kept hiring, with 28,000 jobs, while leisure and hospitality gained 19,000. In contrast, professional and business services shed 27,000 positions. Natural resources and mining lost 8,000.

Figures from September had shown private payrolls increasing by 29,000 in September, well below expectations, while the unemployment rate climbed as well, according to the Bureau of Labor Statistics.

Economists surveyed by Dow Jones expected nonfarm payrolls to increase by 84,000, with the unemployment rate holding at 4.1%. Health care, construction and manufacturing led the gains, while financial activities fell.

The figures were a sizable slowdown from August. And that month's figures were revised lower to 133,000. July's numbers were also changed, going from a gain to a loss of 10,000. Overall, the revisions showed 60,000 fewer jobs that previously reported.

Payroll growth has been volatile through much of this year, even as the unemployment rate has moved relatively little.

Moreover, American workers are receiving a smaller share of U.S. business output than at any point in nearly eight decades even as productivity continues to improve, raising questions about who benefits most from the country's economic growth.

Labor's share of income fell to 52.8% in the second quarter of 2026, down from 53.6% in the previous quarter and 55.3% at the beginning of 2025, according to the Bureau of Labor Statistics.

The measure tracks how much of the output generated by nonfarm businesses goes to employees through wages, salaries, benefits, pensions and other compensation. For much of the period following World War II, that share remained between 60% and 66%. It then began a sustained decline in the early 2000s.

The latest drop has renewed concerns about whether artificial intelligence could accelerate the shift, allowing businesses to generate more output without a comparable increase in employee compensation.