ADP: Private Sector Employment and Compensation Climb in October

According to the ADP National Employment Report released on Wednesday, private sector employment increased by 86,000 jobs in October. Year-over-year, base pay rose 3.2%, while gross pay increased 4.7%.

The jobs report and pay insights use ADP’s anonymized payroll data to provide a representative picture of the private-sector labor market. The employment report is based on weekly payroll data covering more than 26 million private-sector employees in the US, while ADP Pay Insights tracks year-over-year pay changes using more than 14.7 million observations each month.

Commenting on the report, ADP Chief Economist Nela Richardson said:

“Employers of all sizes were hiring last month, and our data suggests that job-changers were lured by a combination of bonuses, overtime, and more hours in addition to higher base pay. Taken together, earnings growth for these workers hit its fastest pace since March 2024.”