U.S. Private Sector Adds 42,000 Jobs in October, ADP Reports

October Sees Modest Rebound in Private Sector Employment

Private sector employers in the United States added 42,000 jobs in October, according to the latest National Employment Report released by ADP on November 5, 2025. This marks the first monthly gain since July, following two consecutive months of declines in August and September. The October figure exceeded the median estimate of a 30,000-job gain from a Bloomberg survey of economists, and Dow Jones analysts' expectation of 22,000 new jobs.

Dr. Nela Richardson, chief economist at ADP, commented on the findings, stating, 'Private employers added jobs in October for the first time since July, but hiring was modest relative to what we reported earlier this year.' She further noted that 'pay growth has been largely flat for more than a year, indicating that shifts in supply and demand are balanced.' Richardson also characterized the October bounce in hiring as 'tepid' and 'not broad-based'.

Industry and Business Size Breakdown

The job gains in October were not uniform across all sectors and business sizes. The service-providing sector led the growth, adding 33,000 jobs. Key contributors included:

• Trade, transportation, and utilities: +47,000 jobs
• Education and health services: +26,000 jobs
• Financial activities: +11,000 jobs

Conversely, several service industries experienced job losses for the third consecutive month, including:

• Information: -17,000 jobs
• Professional and business services: -15,000 jobs
• Leisure and hospitality: -6,000 jobs

The goods-producing sector saw a modest increase of 9,000 jobs, driven by gains in natural resources/mining (+7,000) and construction (+5,000), while manufacturing declined by 3,000 jobs.

In terms of business size, large establishments (500+ employees) were the primary drivers of job creation, adding 73,000 jobs. In contrast, medium-sized businesses saw a reduction of 21,000 jobs, and small businesses shed 10,000 jobs.

Wage Growth and Broader Economic Context

The report also provided insights into wage trends. Annual pay for job-stayers increased by 4.5% year-over-year, while job-changers experienced a higher annual pay growth of 6.7%. This pay growth has remained largely consistent for over a year.

The ADP National Employment Report, produced by ADP Research in collaboration with the Stanford Digital Economy Lab, is based on anonymized payroll data from over 26 million private-sector employees across the United States. The release of this report carried amplified importance due to an ongoing U.S. government shutdown, which has delayed the customary release of official labor market data from the Bureau of Labor Statistics (BLS).

However, a separate weekly update from ADP indicated a potential softening in the labor market towards the end of October. This data suggested that private employers shed an average of 11,250 jobs per week in the four weeks ending October 25, raising questions about the consistency of job growth throughout the month.