Private Sector Job Market Update
The latest report on private sector employment reveals an increase of 42,000 jobs in October. Year-over-year pay growth has also shown a positive trend, rising by 4.5 percent. This data is derived from the comprehensive ADP National Employment Report, created through an alliance between ADP Research and the Stanford Digital Economy Lab.
Understanding the ADP National Employment Report
This report serves as a vital snapshot of the labor market, utilizing anonymized payroll data from over 26 million private-sector employees across the United States. The ADP Pay Insights component adds a rich layer of understanding, drawing from more than 15 million individual pay change observations monthly. These combined insights help illustrate a detailed and high-frequency portrayal of the private sector labor market.
October Employment Trends
Dr. Nela Richardson, chief economist at ADP, highlighted that private employers have added jobs in October, marking the first growth since July. However, the hiring pace remains modest compared to earlier in the year. The consistency of pay growth over the year suggests a balance in supply and demand within the job market.
Key Highlights of October 2025
- The net change in U.S. private employment was an increase of 42,000 jobs.
- Industry trends show that education and healthcare, as well as trade, transportation, and utilities, contributed significantly to the employment growth.
- Conversely, sectors like professional business services, information, and leisure and hospitality reported job losses.
Employment Change by Industry
Overall Employment Change: 42,000
Goods-Producing Sector: Increased by 9,000
- Gains in natural resources/mining (7,000)
- Construction added 5,000 jobs
- Manufacturing, however, lost 3,000
Service-Providing Sector: Increased by 33,000
- Trade/transportation/utilities added 47,000 jobs
- However, information services saw a decrease of 17,000
- Financial activities grew by 11,000
- Professional/business services decreased by 15,000
- Education and health services reported an increase of 26,000
- Leisure and hospitality lowered by 6,000
- Other services experienced a decrease of 13,000
Regional Employment Changes
Northeast: Reduced by 12,000 jobs.
- New England added 7,000
- Mid-Atlantic lost 20,000
Midwest: Gained 9,000 jobs.
- East North Central had a minimal gain of 2,000
- West North Central contributed 7,000
South: Witnessed an increase of 6,000 jobs.
- South Atlantic lost 8,000
- East South Central gained 11,000
- West South Central added 3,000
West: Shined with a significant increase of 40,000 jobs.
- Mountain region contributed 2,000
- Pacific region added an impressive 37,000 jobs.
Employment by Firm Size
Small Establishments: Decreased by 10,000
- Firms with 1-19 employees lost 15,000 jobs
- Firms with 20-49 employees gained 6,000
Medium Establishments: Declined by 21,000
- Firms with 50-249 employees lost 25,000
- Firms with 250-499 employees gained 3,000
Large Establishments: Increased by 73,000
- Firms with 500+ employees produced a net gain of 73,000 jobs.
Pay Insights Overview
The October data shows that pay growth remained steady, with year-over-year increases holding steady at 4.5 percent for those staying in their positions and 6.7 percent for those changing jobs.
Annual Pay Changes
- Job-stayers: Held at 4.5%
- Job-changers: Grew by 6.7%
Insights into median pay changes across industries indicate nuanced movements:
- Goods-producing sector:
- Natural resources/mining at 4.3%
- Construction at 4.5%
- Manufacturing at 4.8%
- Service-providing sector:
- Trade/transportation/utilities at 4.3%
- Information at 4.3%
- Financial activities at 5.2%
- Professional/business services at 4.2%
- Education/health services at 4.4%
- Leisure/hospitality at 4.6%
- Other services at 4.1%
Future Employment Reports
Looking ahead, the upcoming report for November 2025 is anticipated for release on December 3, 2025, at 8:15 a.m. ET.
About ADP Research
ADP Research is dedicated to improving workforce productivity through data innovation. Various stakeholders, including business leaders and policymakers, depend on our detailed analytics for impactful decisions that shape their workplace environments.
About ADP
As a leading entity in HR and payroll solutions, ADP has been innovating for over 75 years, solving business challenges for clients worldwide. From small businesses to global corporations, ADP harnesses advanced technologies to deliver comprehensive solutions that cater to diverse needs, facilitating successful workplace experiences.
Frequently Asked Questions
What is the ADP National Employment Report?
The ADP National Employment Report provides comprehensive data on employment trends in the private sector, using payroll data from millions of employees.
What was the job growth in October?
In October, the private sector saw an increase of 42,000 jobs.
How much did wages grow in October?
Wages grew by 4.5 percent year-over-year in October, indicating steady pay growth.
Which sectors saw job increases?
The education, healthcare, and trade sectors experienced job growth in October.
When is the next ADP employment report scheduled?
The next report is set to be released on December 3, 2025, focusing on November's employment trends.
![aelf and Gaia Partner for the Groundbreaking Hello [AI] Event](/images/blog/ihnews-aelf%20and%20Gaia%20Partner%20for%20the%20Groundbreaking%20Hello%20%5BAI%5D%20Event.jpg)
