US private companies add 86,000 jobs in October but hiring is selective
Private employers added 86,000 jobs in October, beating expectations, but professional and business services saw continued job losses.
Hiring · Source: Reuters
What happened
US private companies added 86,000 jobs in October. This number beat the 69,000 jobs that economists expected. The September total was also revised down slightly to 86,000. This shows solid growth for a second month in a row.
Not all industries are hiring equally. The service-providing sector added 82,000 jobs overall. Trade, transportation, and utilities led the way with 39,000 new roles. Education and health services followed closely by adding 28,000 jobs.
However, professional and business services lost 27,000 jobs. This marks the third straight month of job losses for this sector. The ADP report gives us an early look at the market. The official government jobs report coming on Friday will provide the final test.
By the numbers
- 86,000 — Private sector jobs added in October
- 69,000 — Jobs forecast by economists before the report
- -27,000 — Jobs lost in professional and business services
- 4.8% — Year-over-year base pay increase for job-changers
- 1.06 — Open jobs for every unemployed person in September
Why it matters
The job market is not slowing down across the board, but it is becoming highly selective. If you are looking for work in healthcare or transportation, you will find more open doors. If your background is in professional and business services, you will face a longer and harder search. You need to target industries that are actively growing right now.
The data also shows that changing jobs might still be worth the effort. Base pay for people who switched jobs rose by 4.8 percent compared to last year. Meanwhile, those who stayed in their roles saw a smaller 3.0 percent increase. Employers are using higher base pay to attract new talent in the sectors where they need help.
Who this hits
Professional and business service workers
This group lost 27,000 jobs in October. This is the third consecutive month of declines, meaning longer search times for these professionals.
Job changers
Workers who switch companies are seeing higher pay increases. Their base pay rose by 4.8 percent year over year, compared to 3.0 percent for those who stayed.
Healthcare and education workers
These sectors remain very strong, adding 28,000 jobs last month. Job seekers in these fields will find a much more welcoming market.
What to do this week
- Look for roles in growing sectors like trade, transportation, education, and healthcare.
- Prepare for a longer search if you are targeting professional and business services.
- Wait for Friday's official Bureau of Labor Statistics report to get a complete picture of the job market.
See who's hiring right now on GiraffyReach
My take
I see a job market that is selective rather than slow. The headline numbers look good, but the drop in professional services tells me that many corporate job seekers will still face a tough climb. Keep your focus on industries that are actually hiring and wait for Friday's official data to confirm the trend.