ADP Employment Jumps Most In 8 Months, Small Business Struggles

Following September's big disappointment in BLS data (95k below ADP's print), October saw no relenting in ADP's exuberance with a better than expected +227k (vs +187k exp).

September's +229k spike was revised down to +218k making October's +227k print the best since February

Under the hood, small business rose the least with no cohorts seeing net job losses...

“Despite a significant shortage in skilled talent, the labor market continues to grow,” said Ahu Yildirmaz, vice president and co-head of the ADP Research Institute.

”We saw significant gains across all industries with trade and leisure and hospitality leading the way. We continue to see larger employers benefit in this environment as they are more apt to provide the competitive wages and strong benefits employees desire.”   

Mark Zandi, chief economist of Moody’s Analytics, said,

“The job market bounced back strongly last month despite being hit by back-to-back hurricanes. Testimonial to the robust employment picture is the broad-based gains in jobs across industries. The only blemish is the struggles small businesses are having filling open job positions.”   

Full Breakdown:

     ADP National Employment Report: Private Sector Employment Increased by 227,000 Jobs in October

If projecting today's ADP data on to Friday's BLS payrolls print, bear in mind that last month was the biggest variance since Sept 2015...