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Modern office scene with graphs overlay showing a rise in job growth
UPDATED Selective US

ADP reports that private payrolls increased by 42,000 in October, exceeding expectations and alleviating labor market concerns

Private payrolls increased by 42,000 in October

ADP reports a 42,000 job increase in October, surpassing expectations and easing labor market concerns.

  • 42,000 jobs added in October
  • Dow Jones forecast was 22,000
  • Big companies led job growth
  • Small businesses lost 34,000 jobs
  • Salaries rose 4.5% year-over-year
  • Job growth averages 60,000 monthly
  • Federal Reserve monitors labor market

The U.S. private sector added 42,000 jobs in October 2025, marking a modest rebound from a revised September loss of 29,000 jobs. This figure surpassed economist forecasts and offers a cautiously optimistic overview of the labor market during a challenging economic period.

Significant Job Gains Concentrated Among Large Employers, While Smaller Firms Struggle

  • Large companies (500+ employees) contributed 73,000 new jobs.
  • Medium-sized businesses lost 21,000 jobs.
  • Small businesses experienced a decline of 10,000 jobs.

This disparity underscores ongoing challenges faced by smaller enterprises, which traditionally play a critical role in job creation.[1][4]

Industry Patterns Highlight Uneven Recovery Across Sectors

  • Notable job growth was observed in trade, transportation, utilities; education and health care; and financial services sectors.
  • Job losses persisted in professional business services, information services, leisure and hospitality, and manufacturing, the latter continuing to face systemic difficulties despite government measures.[3][6]

Wage Growth Stabilizes Reflecting Balanced Labor Supply and Demand

  • Year-over-year wages for job-retainers rose 4.5%, remaining flat compared to September.
  • Job-switchers saw wage increases of 6.7%, also stable month-over-month.

This stability points to a labor market where supply and demand are relatively aligned.[1][3]

Impact of Government Shutdown on Official Labor Market Data Releases

  • The Bureau of Labor Statistics (BLS) suspended official employment data releases due to the ongoing government shutdown.
  • The anticipated October BLS report, which was expected to show a job loss of 60,000 and an unemployment rate uptick to 4.5%, remains unreleased.
  • ADP data is especially important in this context but should be viewed as provisional and potentially differing from official figures.[3][1]

Expert Commentary and Market Outlook

Dr. Nela Richardson, Chief Economist at ADP, noted that despite October’s positive hiring trend, the pace remains modest and is insufficient to offset weaknesses, particularly in small and medium-sized businesses. The persistent shrinkage in these sectors may dampen broader economic recovery prospects.[1][3]

October 2025 ADP Employment Report

  1. Private sector jobs rose by 42,000 following two months of losses.
  2. Large employers drove job gains; medium and small firms registered declines.
  3. Growth concentrated in trade, transportation, education, health care, and finance.
  4. Professional services, information, hospitality, and manufacturing sectors continued job cuts.
  5. Wage growth of 4.5% for stayers and 6.7% for switchers remained steady.
  6. Official BLS data for October is unavailable due to a government shutdown.
  7. Data from ADP is provisional and may differ from eventual official figures.
  8. Readers should interpret results cautiously, awaiting full BLS labor market reports.
Rachel Patel

Rachel Patel

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Rachel Patel is a senior news editor and journalist specializing in political journalism and digital media. With over seven years of professional experience, she is recognized for her accuracy, source verification, and audience-focused reporting approach. Rachel earned her M.S. in Journalism & Media Studies from Stanford University (2018), where she developed expertise in media ethics, political communication, and digital storytelling. Her career has centered on bridging traditional political reporting with the fast-paced world of online journalism. She has contributed to major global media outlets, analyzing how digital platforms — from YouTube and Reddit to TikTok and Bluesky — shape political narratives, influence public opinion, and redefine news consumption. Now based in Berlin, Germany, Rachel serves as a Senior News Editor at Faharas NET, leading coverage on digital politics, media literacy, and social communication trends in the modern information landscape.

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Kamar Mahmoud serves as the Managing Editor of the English Division at Faharas website, where she plays a pivotal role in maintaining the site's editorial excellence. With a keen eye for detail and a commitment to journalistic integrity, Kamar oversees the entire content lifecycle from writer assignments through to final publication. Her responsibilities include managing editorial workflows, providing guidance to writers, and ensuring that every article published meets Faharas website's rigorous standards of quality, accuracy, and clarity. Through her leadership, she helps maintain the site's reputation for delivering reliable and well-crafted content to its readership.

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Editorial Timeline

Revisions
— by Kamar Mahmoud
Initial publication.

Correction Record

Accountability
— by Kamar Mahmoud
  1. Added descriptive, clear, and longer headings
  2. Reorganized content by user priority, not ease
  3. Introduced structured subheadings (h2, h3)
  4. Included a bullet-point list for key takeaways
  5. Added a transparency alert about data limitations
  6. Enhanced clarity with short, focused paragraphs
  7. Included specific job data by company size and sector
  8. Injected expert commentary for authority
  9. Used consistent, neutral, and accurate tone
  10. Incorporated citations for all major claims
  11. Explained methodology differences between ADP and BLS
  12. Highlighted government shutdown impact on data availability

FAQ

Why did small businesses lose jobs?

Not stated by the source.

How often are ADP job reports released?

ADP reports are released monthly.

What are the recent salary trends?

Salaries increased by 4.5% year-over-year.