U.S. private sector employment increased by about 113,000 positions in October, a steady gain that could continue to propel consumer spending, according to new data released Wednesday by payroll processor ADP.
ADP’s latest national employment report also showed annual wages were up 5.7%.
“No sector dominated hiring this month, and the strong post-pandemic wage increases appear to be behind us,” Nela Richardson, ADP chief economist, said in a statement.
The resilience of the nation’s labor market has helped keep spending afloat, economists say.
Last month’s tally represents an increase in hiring from September, when ADP reported a net gain of just 89,000 jobs, well below economists’ expectations of an increase of 153,000 jobs.
Private sector job growth in October was also much lower than economists had expected: the consensus forecast on Refinitiv was that private sector employers would hire 150,000 more workers.
Although ADP’s tables don’t always match the official federal jobs report — due Friday — they are sometimes seen as an indicator of overall hiring activity.
Economists expect the BLS jobs report for October to be a more moderate — but still strong — increase of 180,000 jobs, according to Refinitiv estimates.