![Private sector payrolls rose by 113,000 in October, less than expected, ADP said](https://image.cnbcfm.com/api/v1/image/107326788-16988418031698841800-31838034287-1080pnbcnews.jpg?v=1698841803&w=750&h=422&vtcrop=y)
Private sector wage growth rose modestly in October, but fell short of expectations. This is a possible sign that the employment picture could be darkening, ADP reported on Wednesday.
The payroll processing company said companies added 113,000 workers this month, up from the unchanged 89,000 in September but below the Dow Jones consensus estimate of 130,000.
On the payroll front, ADP says wages increased 5.7% from a year ago, the smallest annual gain since October 2021.
From a sector perspective, education and healthcare services led the way with 45,000 new jobs. Other notable gainers were trade, transport and utilities (35,000), financial activities (21,000) and leisure and hospitality (17,000).
Nearly all the jobs came from service industries, with goods producers contributing just 6,000 to the total.
Companies with between 50 and 499 employees contributed the most, with a gain of 78,000.
‘No sector dominated hiring this month, and big post-pandemic pay increases appear to be behind us
us,” said Nela Richardson, ADP chief economist. ‘Overall, October’s figures paint a well-rounded picture of employment. And while the labor market has slowed, this is still enough to support strong consumer spending.”
The release comes two days ahead of the Department of Labor’s official nonfarm payroll report, which is expected to show an increase of 170,000 and includes government jobs, unlike ADP. ADP and government figures can differ significantly, as was the case in September when the Department of Labor reported a gain of 336,000, more than three times ADP’s estimate.