Quick Review of the U.S. October ADP Employment Report

In October, the ADP employment number in the United States increased by 42,000, the largest increase since July, with expectations of an increase of 30,000. The previous value was revised from a decrease of 32,000 to a decrease of 29,000. ADP Chief Economist Nela Richardson stated that private employers added jobs for the first time in October since last July, but the number of hires is not significant compared to earlier reports this year. Meanwhile, wage growth has remained basically flat for over a year, indicating a balance in supply and demand changes. Due to the longest government shutdown in U.S. history delaying the release of official economic data, the ADP report is one of the few monthly snapshots of the labor market. While it helps ease concerns about a rapid deterioration in the job market, the moderate growth in employment last month aligns with the overall weakness in labor demand