ADP Data: US Companies Added 42,000 Jobs In October, Mark First Gain Since July

• The October payroll gain surpassed Wall Street expectations of an addition of 22,000 jobs during the month.
• However, October’s gains were not broad-based, according to the payroll processor.
• Large establishments added 73,000 jobs in October, while small and medium establishments experienced a decline of 31,000.

U.S. companies added 42,000 jobs in October, registering the first month of gains since July, when more than 104,000 jobs were added.

The October payroll gain surpassed Wall Street expectations of an addition of 22,000 jobs during the month, according to Dow Jones data as compiled by MarketWatch.

Bouncing Back

The gains in October follow two months of declines in the job market. According to revised ADP data, private payrolls declined by 29,000 in September and by 3,000 in August.

“Private employers added jobs in October for the first time since July, but hiring was modest relative to what we reported earlier this year. Meanwhile, pay growth has been largely flat for more than a year, indicating that shifts in supply and demand are balanced.”

— Nela Richardson, Chief Economist, ADP

The report noted that while those who remained in their current jobs experienced a 4.5% median increase in annual pay, those who made a job switch saw a 6.7% median gain.

Gains Not Broad-Based

However, October’s gains were not broad-based, according to the payroll processor. While there was growth in education, healthcare, trade, transportation, and utilities, there were declines elsewhere. The report stated that job declines occurred for the third consecutive month in professional business services, information, and leisure and hospitality.

Jobs in businesses with fewer than 50 employees declined by 10,000, while medium establishments with more than 50 and less than 500 employees saw a decline of 21,000. In contrast, large establishments with 500 or more employees added 73,000 jobs during October, according to the report.

Meanwhile, U.S. equities gained in Wednesday’s opening trade. At the time of writing, the SPDR S&P 500 ETF (SPY), which tracks the S&P 500 index, was up by 0.32%, the Invesco QQQ Trust ETF (QQQ) gained 0.44%, while the SPDR Dow Jones Industrial Average ETF Trust (DIA) rose 0.35%. Retail sentiment around the S&P 500 ETF on Stocktwits was in the ‘extremely bearish’ territory.

The iShares 7-10 Year Treasury Bond ETF (IEF) was down 0.23% at the time of writing.

Also See: Dan Ives Says Wall Street Is ‘Underestimating’ Scale And Scope Of AI Revolution: ‘Bears Have Never Understood This…’

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