ADP jobs rundown/Slicing and dicing Q3 GDP

ADP said the US private sector added a net 233k jobs in October, about double the estimate of 111k and vs 159k in September which was revised up by 16k. There was almost no job growth for small businesses with employees under 50 but jumps for medium and large companies.

The service sector added 211k with education/health services again leading the way with a rise of 53k. The trade/transportation/utilities sector added 51k, well above the 14k seen last month and considering the sluggish pace of trade and transport, maybe it was mostly in the utility side related to data center electricity needs, just a guess. Leisure/hospitality added 37k, a similar amount seen in September. The professional/business services category contributed 31k jobs and information added 7k. Financial services hired a net 11k.

On the goods side, construction continues to be the area of hiring strength and being helped by the Chips Act and IRA as these manufacturing facilities are getting built. Also, data center buildouts are in need of construction workers. The hiring is certainly not coming from the commercial real estate sector relatively speaking. Manufacturing, the area of the economy still in recession, shed 19k jobs.