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239,000 New Jobs Added in October; Pay Up 7.7%

Private sector employment increased by 239,000 jobs in October and annual pay was up 7.7 percent year-over-year, according to the October ADP National Employment Report.

Private sector employment increased by 239,000 jobs in October and annual pay was up 7.7 percent year-over-year, according to the October ADP National Employment Report produced by the ADP Research Institute in collaboration with the Stanford Digital Economy Lab).

The jobs report and pay insights use ADP’s fine-grained anonymized and aggregated payroll data of over 25 million U.S. employees to provide a representative picture of the labor market. The report details the current month’s total private employment change, and weekly job data from the previous month. ADP’s pay measure uniquely captures the earnings of a cohort of almost 10 million employees over a 12-month period.

ADP Research Institute, logo (PRNewsfoto/ADP, Inc.)
ADP Research Institute, logo (PRNewsfoto/ADP, Inc.)

“This is a really strong number given the maturity of the economic recovery but the hiring was not broad-based,” said Nela Richardson, chief economist, ADP. “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.”

October 2022 Report Highlights*

View the ADP National Employment Report and interactive charts at www.adpemploymentreport.com.

Jobs Report

Private employers added 239,000 jobs in October
Employers created 239,000 jobs in October, up from a revised 192,000 in September as restaurants, retailers and the travel sector ramped up hiring in advance of the year-end holidays.

Change in U.S. Private Employment:     239,000

Change by Industry Sector

– Goods-producing:     –8,000

  • Natural resources/mining     11,000
  • Construction     1,000
  • Manufacturing     -20,000

Service-providing:     247,000

  • Trade/transportation/utilities     84,000
  • Information     -17,000
  • Financial activities     -10,000
  • Professional/business services     -14,000
  • Education/health services     -5,000
  • Leisure/hospitality     210,000
  • Other services     -1,000

Change by U.S. Regions

Northeast:     50,000

  • New England     -1,000
  • Middle Atlantic     51,000

Midwest:     -23,000

  • East North Central     -23,000
  • West North Central     0

South:     -17,000

  • South Atlantic     0
  • East South Central     -1,000
  • West South Central     -16,000

West:     229,000

  • Mountain     -27,000
  • Pacific     256,000

Change by Establishment Size

Small establishments:     25,000

  • 1-19 employees     62,000
  • 20-49 employees     -37,000

Medium establishments:     218,000

  • 50-249 employees     241,000
  • 250-499 employees     -23,000

Large establishments:     -4,000

  • 500+ employees     -4,000

PAY INSIGHTS

Pay growth eased again in October
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 percent in October from 15.7 percent in September. For job stayers, pay gains were 7.7 percent, in line with recent months.

Median Change in Annual Pay (ADP matched person sample)

Job-Stayers     7.7%
Job-Changers     15.2%

Median Change in Annual Pay for Job-Stayers by Industry Sector

Goods-producing:                                                       

  • Natural resources/mining     7.9%
  • Construction     6.9%
  • Manufacturing     7.7%

Service-providing:                                               

  • Trade/transportation/utilities     8.4%
  • Information     7.3%
  • Financial activities     7.8%
  • Professional/business services     6.8%
  • Education/health services     7.3%
  • Leisure/hospitality     11.2%
  • Other services     7.0%

Median Change in Annual Pay for Job-Stayers by Firm Size

Small firms:                                                                

  • 1-19 employees     5.6%
  • 20-49 employees     7.3%

Medium firms:                                                             

  • 50-249 employees     8.0%
  • 250-499 employees     7.9%

Large firms:                                                                

  • 500+ employees     8.4%

To see Pay Insights by U.S. State, Gender, and Age for Job-Stayers, visit here:

* Sum of components may not equal total, due to rounding.

The historical data file, and weekly data for the previous month, is available at https://adpemploymentreport.com/.