(The Center Square) – A new private sector jobs report showed significant job creation for the month of October, a good sign for the economy which has struggled to recover from the pandemic-era shutdowns.
ADP released the report Wednesday saying the U.S. economy added 571,000 nonfarm, private sector jobs last month, higher than many experts’ predicted.
“The labor market showed renewed momentum last month, with a jump from the third quarter average of 385,000 monthly jobs added, marking nearly 5 million job gains this year,” said Nela Richardson, chief economist at ADP, a major payroll company that releases monthly economic data with Moody Analytics. “Service sector providers led the increase and the goods sector gains were broad based, reporting the strongest reading of the year. Large companies fueled the stronger recovery in October, marking the second straight month of impressive growth.”
Of those added jobs 342,000 were created by large companies with 500 employees or more; 114,000 came from midsized companies with 50-499 employees, and 115,000 were created by small companies with fewer than 50 workers. The leisure and hospitality industry saw the biggest gains, with 185,000 added jobs.
The report comes ahead of the federal jobs report, expected Friday.
“The report, which is derived from ADP’s actual data of those who are on a company’s payroll, measures the change in total nonfarm private employment each month on a seasonally-adjusted basis,” ADP said. “The matched sample used to develop the ADP National Employment Report was derived from ADP payroll data, which represents 460,000 U.S. clients employing nearly 26 million workers in the U.S.”