Private sector employment increased by 230,000 jobs from September to October, according to payroll giant ADP.
The October ADP National Employment Report found that small businesses added 102,000 jobs, including 53,000 jobs in businesses with between one and 19 employees, and 49,000 at businesses with between 20 and 49 employees. Midsize businesses with between 50 and 499 employees added 122,000 jobs. Large businesses with 500 to 999 employees added 14,000 jobs, but those with 1,000 employees or more lost 8,000 jobs.
"Employment continues to trend upward as we begin the last quarter of 2014, driven mostly by small to midsized companies,” said ADP president and CEO Carlos Rodriguez in a statement last Wednesday. “October’s job growth is the highest since June and the second highest gain of 2014.”
The service sector led the way with 181,000 jobs added in October, while the goods-producing sector added 181,000 jobs.
Professional and business services, which include accounting, tax and other services, gained 53,000 jobs. The financial activities sector added 4,000 jobs. The combined trade, transportation and utilities industries increased by 47,000 jobs. The manufacturing industry added 15,000 jobs, while the construction industry added 28,000 positions.The U.S. also added 16,970 franchise jobs in October, according to the ADP National Franchise Report, mainly at restaurants, which contributed over 13,000 of those jobs.
“The job market is steadily picking up pace,” said Mark Zandi, chief economist of Moody’s Analytics, which compiles the monthly employment reports with ADP. “Job growth is strong and broad-based across industries and company sizes. At this pace of job growth unemployment and underemployment is quickly declining. The job market will soon be tight enough to support a meaningful acceleration in wage growth.”
Last Friday, the U.S. Bureau of Labor Statistics reported that employers in both the private and public sectors added 214,000 jobs last month, sending the unemployment rate down one-tenth of a percentage point to 5.8 percent, the lowest unemployment rate since July 2008. The BLS also revised upward the job gains for August and September by a combined 31,000 jobs.
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