Private employment increased by 239,000 jobs in October, following the addition of 192,000 jobs in September (a downward revision), according to the latest ADP National Employment Report.
“This is a really strong number given the maturity of the economic recovery,” said Nela Richardson, ADP’s Chief Economist, “but the hiring was not broad-based. Goods producers, which are sensitive to interest rates, are pulling back, and job changers are commanding smaller pay gains. While we’re seeing early signs of Fed-driven demand destruction, it’s affecting only certain sectors of the labor market.”
Leisure/hospitality added the most jobs in October (+210,000), followed by trade/transportation/utilities (+84,000) and natural resources/mining (+11,000). Jobs declined in manufacturing (-20,000), information (-17,000), and professional/business services (-14,000). By establishment size, changes in employment ranged from -37,000 (20-49 employees) to +241,000 (50-249 employees) for the month.
The median change in annual pay was 7.7% for job stayers and 15.2% for job changers in October. And for another month, pay increased most in leisure/hospitality (11.2%), while professional/business services (6.8%) and construction (6.9%) showed the smallest increases. Pay raises were highest for firms with 500+ employees (8.4%) and lowest for firms with 1-19 employees (5.6%).
