ADP National Employment Report: Private Sector Employment Increased by 125,000 Jobs in October

Private sector employment increased by 125,000 jobs from September to October according to the October ADP National Employment Report. Broadly distributed to the public each month, free of charge, the ADP National Employment Report is produced by the ADP Research Institute in collaboration with Moody’s Analytics.  The report, which is derived from ADP’s actual payroll data, measures the change in total nonfarm private employment each month on a seasonally-adjusted basis.

October 2019 Report Highlights

Total US Nonfarm Private Employment: 125,000

By Company Size

– Small businesses:     17,000

  • 1-19 employees     -12,000
  • 20-49 employees     30,000

Medium businesses:      64,000

  • 50-499 employees     64,000

– Large businesses:     44,000

  • 500-999 employees     10,000
  • 1,000+ employees     33,000

By Sector

Goods-producing:     -13,000

  • Natural resources/mining     -4,000
  • Construction     -4,000
  • Manufacturing     -4,000

Service-providing:     138,000

  • Trade/transportation/utilities     32,000
  • Information     3,000
  • Financial activities     17,000
  • Professional/business services     18,000
       – Professional/technical services     11,000 
       – Management of companies/enterprises     4,000 
       – Administrative/support services     3,000
  • Education/health services     41,000 
       – Health care/social assistance     35,000 
       – Education     5,000
  • Leisure/hospitality     19,000
  • Other services     9,000

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

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– Franchise Employment**

  • Franchise jobs     30,100

“While job growth continues to soften, there are certain segments of the labor market that remain strong,” said Ahu Yildirmaz, vice president and co-head of the ADP Research Institute. “The goods producing sector showed weakness; however, the healthcare industry and midsized companies had solid gains.”

Mark Zandi, chief economist of Moody’s Analytics, said, “Job growth has throttled way back over the past year. The job slowdown is most pronounced at manufacturers and small companies. If hiring weakens any further, unemployment will begin to rise.”

The matched sample used to develop the ADP National Employment Report was derived from ADP payroll data, which represents 411,000 U.S. clients employing nearly 24 million workers in the US  The September total of jobs added was revised down from 135,000 to 93,000.

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