Businesses added 230,000 jobs in October
Businesses added 230,000 jobs in October, payroll processor ADP said Wednesday, possibly foreshadowing another strong month of employment gains in the government's closely watched report due Friday.
Economists had estimated ADP would report 220,000 new private sector jobs, according to the median forecast in Action Economics' survey. Ahead of the ADP report, they predicted the Labor Department's survey this Friday to show 230,000 payroll gains by businesses, as well as federal, state and local governments.
The two reports reflect similar hiring trends, but ADP's tally has differed from Labor's private-sector job tally by an average 35,000 since Moody's Analytics began helping ADP compile the data two years ago, according to High Frequency Economics. ADP said businesses added 230,000 jobs in September while Labor's preliminary estimate was 236,000 and, for the economy overall, 248,000.
In October, mid-size businesses added 122,000 jobs, small businesses, 102,000 and large companies, 5,000, ADP said.
Professional and business services led job gains, with 53,000. Trade, transportation and utilities added 47,000 and construction, 28,000. Manufacturers added a solid 15,000 jobs.
"The job market is steadily picking up pace," said Mark Zandi, chief economist of Moody's Analytics, which helps ADP compile the report. "Job growth is strong and broad-based across industries and company sizes."