ADP® Reports Increased Private Sector Employment and Compensation Gains in October

According to the ADP® National Employment Report™ released on Wednesday (11-01-23), nonfarm private sector employment increased by 113,000 jobs in October, and annual pay was up 5.7% year-over-year.

The ADP National Employment Report is produced by the ADP Research Institute® in collaboration with Stanford Digital Economy Lab (“Stanford Lab”). The report is an independent measure and high-frequency view of the private sector labor market based on actual, anonymized payroll data of more than 25 million US employees. The report details the current month’s total private employment change, and weekly job data from the previous month. Because the underlying ADP payroll databases are continuously updated, the report provides near real-time measure of US employment. This measure reflects the number of employees on ADP client payrolls (Payroll Employment) to provide a richer understanding of the labor market. ADP’s pay measure uniquely captures the earning of a cohort of almost 10 million employes over a 12-month period.

Adding additional background and her analysis to the report, Nela Richardson, ADP’s chief economist, said:

“No single industry dominated hiring this month, and big post-pandemic pay increases seem to be behind us. In all, October’s numbers paint a well-rounded job picture. And while the labor market h as slowed, it’s still enough to support strong consumer spending.”