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ADP National Employment Report Overview

The October 2025 edition of the ADP National Employment Report highlights a modest recovery in private sector employment, marking an increase of 42,000 jobs compared to previous months. This report, produced in collaboration with the Stanford Digital Economy Lab, is based on anonymized data from over 26 million private-sector employees across the United States.

Job Growth Insights

The data showcases that private employers added jobs for the first time since July 2025, although the pace of hiring has been described as modest when compared to earlier periods this year. Dr. Nela Richardson, the chief economist at ADP, emphasized that while job creation has resumed, the growth is not broad-based. Notably, sectors such as education, healthcare, and trade showed significant improvements, whereas professional business services and leisure industries continued to struggle.

Sector Breakdown

The job gains are primarily concentrated in:

• - Goods-producing sectors: 9,000 jobs added, with construction contributing 5,000 jobs, while manufacturing saw a decline of 3,000.
• - Service-providing sectors: 33,000 jobs were added, showcasing robust growth particularly in trade, transportation, and utilities (47,000 jobs).
• - Unfortunately, sectors such as information, professional/business services, and leisure/hospitality experienced job losses.

Regional Developments

The report also offers insights into job distribution across various regions:

• - The West reported the highest gains with 40,000 jobs, while the Mid-Atlantic region saw a loss of 20,000.
• - Other regions, including the South, experienced minor job additions, indicating varied recovery rates across the country.

Pay Growth Trends

In terms of compensation, the report reveals that annual pay for job-stayers has plateaued at 4.5%, maintaining its steady trend from the previous month. Job-changers, however, enjoyed a more considerable annual pay increase of 6.7%. This trend indicates that while job-seekers can negotiate better salaries, companies are still managing to offer limited pay raises to their current workforce.

Breakdown by Industry and Firm Size

Pay growth showed differences by sector:

• - Financial activities saw one of the highest increases at 5.2%.
• - Small firms offering jobs for 1-19 employees experienced only a 2.5% increase in pay, while larger firms displayed higher increases ranging from 4.8% to 4.9% for firms with over 500 employees.

This segment of the report reflects a workforce balance, suggesting a dynamic in supply and demand trends that impact how salaries are adjusted across different sectors.

Looking Ahead

With the data from October highlighting both job growth and stagnant pay increases, stakeholders in various sectors are urged to analyze these trends for better workforce strategies moving forward. The next release of the ADP National Employment Report is scheduled for December 3, 2025.

For those looking to dive deeper into the employment landscape, including state-specific insights and historical data, the ADP website provides comprehensive resources for analysis.

As the employment landscape continues to shift, monitoring these trends will be essential for businesses, employees, and policymakers alike to adapt to the evolving job market.