In October, ADP reported that private job creation exceeded expectations with a total of 233,000 new jobs created.

• In the month, private companies hired 233,000 new workers, surpassing the upwardly revised 159,000 in September and significantly exceeding the Dow Jones estimate for 113,000.
• It was the best month for job creation since July 2023.
• Expectations for a slowdown in October are countered by two brutal hurricanes and strikes at Boeing and ports on the Eastern seaboard.

Despite a devastating storm season in the Southeast and major labor disruptions, the private-job creation rate reached its highest level in over a year during October, according to ADP's report on Wednesday.

In September, companies hired 159,000 new workers, but in October, they hired 233,000, surpassing the upwardly revised estimate of 113,000. ADP reported that October was the best month for job creation since July 2023.

"Despite the ongoing hurricane recovery, job growth remained strong in October, according to Nela Richardson, ADP chief economist. As the year comes to a close, hiring in the U.S. is proving to be robust and resilient."

The numbers indicate that there may not be a slowdown in October, despite the two hurricanes, Helene and Milton, that devastated the Southeast, particularly Florida and North Carolina.

The Federal Reserve officials will likely dismiss the October outlier report when they meet next week, as labor disruptions with port workers and Boeing were also expected to affect payrolls.

Despite the ADP report indicating that the labor market has held up, wages grew 4.6% from a year ago.

The economy experienced widespread gains, with leading sectors including education and health services, trade, transportation and utilities, construction and leisure and hospitality, and professional and business services, each contributing 31,000.

Since Sept. 13, the Boeing strike has caused 33,000 of its workers to be sidelined, resulting in manufacturing being the only sector to report losses, totaling 19,000 on the month.

Companies with 500 or more employees accounted for 96% of job creation, adding 140,000 workers, while businesses with fewer than 50 employees remained stagnant, contributing only 4,000 jobs.

The Bureau of Labor Services' nonfarm payrolls count, which is closely monitored, is projected to show only a 100,000 growth and an unemployment rate remaining steady at 4.1%, according to the ADP report traditionally released on Friday.

The ADP and BLS reports can differ significantly, with the latter including government workers. The BLS report revealed private job gains of 223,000 in September and a total payroll growth of 254,000.