Private employers hire 113,000 new workers in October; pay growth slows
(The Center Square) – U.S. private employers grew their payrolls by 113,000 workers in October versus September’s 89,000 new hires, a month-over increase of 21 percent, according to the October ADP National Employment Report, a collaboration with the Stanford Digital Economy Lab.
“No single industry dominated hiring this month, and big post-pandemic pay increases seem to be behind us,” said Nela Richardson, ADP’s chief economist, said in a statement. “In all, October's numbers paint a well-rounded jobs picture. And while the labor market has slowed, it's still enough to support strong consumer spending.”
Private consumption spending is the biggest part of the U.S. economy.
By establishment size, mid-sized companies with 50-249 employees led the way in October with 96,000 new hires versus 55,000 in September. Employers with 1-19 employees registered 21,000 new hires in October versus September’s 67,000.
By industry, health and education employers topped the job creation list in October, adding 45,000 payroll jobs compared with 10,000 new hires in September. Trade, transportation and utilities employers recorded the next-highest total of employment in October with 35,000 new hires after shedding 13,000 jobs in September.
Leisure and hospitality employers added 17,000 payroll jobs in October compared with 92,000 new hires in September. This industry sector experienced a tsunami of business closings and job cuts during the coronavirus pandemic in a government bid to slow transmission of the virus.
October’s year-over 5.7 percent annual pay rate dipped from September’s 5.9 percent growth for the median (half above and half below) job stayers. The job stayers’ median annual pay was $57,800 in October compared with September’s $57,700, according to ADP.
In terms of October’s pay growth and gender, female workers’ earnings outstripped men in all age groups, from 16-24 to, 25-34, 35-54 and 55-84, the same case in September, according to ADP. Washington DC’s annual median annual pay rate of $97,500 was the highest nationally in October, as it was for September’s $96,600.
Turning to changes in regional employment growth, the South grabbed the top spot in October with 64,000 new hires after shedding 16,000 jobs in September. The West was next in terms of job creation with 46,000 new hires, down from September’s 66,000 payroll jobs.
The Northeast added 21,000 payroll jobs in October compared with September’s 34,000. Midwest employers shed 13,000 jobs in October after adding 2,000 in September.
ADP analyzes private-sector payroll transaction data to deliver views on the wage incomes and salaries of a cohort of nearly 10 million employees over 12 months.