October saw the nation’s employment level rise, according to the monthly ADP National Employment Report released Wednesday, as the private sector added 239,000 jobs and annual pay increased 7.7% year-over-year.
“This is a really strong number, given the maturity of the economic recovery, but the hiring was not broad-based,” Nela Richardson, chief economist, ADP, stated. “Goods producers, which are sensitive to interest rates, are pulling back, and job changers are commanding smaller pay gains. While we’re seeing early signs of Fed-driven demand destruction, it’s affecting only certain sectors of the labor market.”
While job growth increased from last month’s revised figure, it is typical for this time of year, as restaurants, retailers and the travel sector ramp up hiring in advance of the year-end holidays.
In terms of company size, large establishments fared the worst, losing 4,000 jobs. Small establishments added 25,000 positions and medium-sized businesses gained 218,000.
Looking at where these positions were added, the service-providing sector led the way with 247,000 positions filled — within that cohort, trade/transportation/utilities saw a 84,000-slot increase, while leisure/hospitality added 210,000 jobs.
Job changers continued to record double-digit, year-over-year pay increases, but momentum in those gains is ebbing. For these workers, annual pay growth edged down for the third straight month, to 15.2% in October from 15.7% in September. For job stayers, pay gains were 7.7%, in line with recent months.