US private hiring surges in October: ADP

The United States saw private sector employment rise by 233,000 this month, ADP said, defying analyst expectations of a slowdown according to consensus estimates and well above a revised tally of 159,000 for September.

Voters have said economic issues remain a top priority as they head to the polls next week to select a new president.

Despite a resilient jobs market, surveys have shown that US households remain unconvinced that the world's biggest economy is in great shape.

One problem is the weight of cumulative inflation on consumers -- even as the country has largely bounced back from economic pain during the coronavirus pandemic.

“As we round out the year, hiring in the US is proving to be robust and broadly resilient,” said ADP chief economist Nela Richardson in a statement.

She added that job growth was strong this month even as states were recovering from multiple devastating hurricanes.

October's growth was the highest since July 2023, according to ADP.

The figures come days before an employment report released by the government, with all eyes on the strength of the US economy as analysts anticipate the size of future central bank interest rate cuts.

Federal Reserve policymakers are slated to gather next week, days after the US presidential election, and a hotter-than-expected labor market could prompt officials to opt for a less aggressive reduction.

Wage growth was 4.6 percent from a year ago, ADP said, noting this furthered a “two-year slowdown.”For those who changed jobs, pay gains cooled to 6.2 percent.

Among sectors, manufacturing was the only to lose jobs, according to ADP.