Private-job creation reached its highest level in over a year in October, with 233,000 new workers hired, surpassing expectations and marking the best month for job creation since July 2023. Despite the impact of hurricanes and labor disruptions, the labor market remained strong, with wages growing by 4.6% from a year ago. The gains were seen across various sectors, with education, health services, trade, transportation, construction, leisure, and hospitality all showing significant increases in hiring. However, manufacturing reported losses due to the Boeing strike. Job creation was concentrated in larger companies, with those employing 500 or more workers accounting for a substantial portion of the new hires.
The ADP report suggests that the labor market has remained resilient, contradicting expectations of a slowdown in job growth following the devastating hurricanes and labor disputes. The report also indicates that the Federal Reserve is likely to view the strong job creation positively. The upcoming nonfarm payrolls report from the Bureau of Labor Services is projected to show more modest growth, with an increase of 100,000 jobs expected. However, it is important to note that the ADP and BLS reports can differ significantly, as the latter includes government workers in its count. Overall, the strong job creation numbers in October demonstrate the robustness of the U.S. labor market, despite challenging external factors.
Photo credit
www.nbcnews.com