US Adds 86,000 Jobs in October as Workers Earn More by Switching Jobs

The United States private-sector labor market showed signs of continued growth in October, with employers adding 86,000 jobs, according to a new report released by ADP on November 4, 2026. The latest figures indicate that hiring activity remains positive across several major industries, while workers who switch employers are experiencing significantly stronger earnings growth than those who remain in their current positions.

The October employment figures came in above economists’ expectations, offering a positive signal about the condition of the American labor market. However, the report also revealed considerable differences between industries, with some sectors expanding their workforces while others continued to lose jobs.

According to the ADP National Employment Report, private-sector employment increased by 86,000 positions during October. Economists had expected a smaller increase, with forecasts generally ranging between 69,000 and 75,000 jobs.

The latest result matched September’s revised employment gain of 86,000 jobs. ADP had previously estimated September’s increase at 90,000, but subsequently revised the figure downward.

The report was produced by ADP Research in collaboration with Stanford University’s Digital Economy Lab. It is based on anonymized weekly payroll information covering more than 26 million private-sector employees across the United States.

One of the most notable findings was the continued strength of hiring in trade, transportation and utilities. These industries added 39,000 jobs in October, making them the largest contributors to private-sector employment growth during the month.

Education and health services also performed strongly, adding 28,000 jobs. This reflects continued demand for employees across healthcare facilities, educational institutions and related services.

The leisure and hospitality sector, which includes hotels, restaurants and tourism-related businesses, added another 19,000 positions.

Financial activities contributed 15,000 new jobs, while other services added 10,000.

Construction employment increased by 13,000, indicating continued demand for workers in building and infrastructure-related activities.

However, not every industry experienced positive growth. Professional and business services recorded a loss of 27,000 jobs in October. This was the third consecutive month of employment declines in the sector.

The information industry also lost 2,000 positions. Manufacturing employment declined by 1,000 jobs, while natural resources and mining experienced a larger reduction of 8,000 positions.

Overall, service-providing industries added 82,000 jobs, while goods-producing industries contributed another 4,000. The figures show that most of October’s employment growth came from businesses providing services rather than companies producing physical goods.

The report also revealed that businesses of different sizes continued hiring.

Small establishments added 28,000 jobs, medium-sized businesses contributed 33,000, and large establishments added 24,000 positions.

This suggests that employment growth was not limited to major corporations. Smaller companies and medium-sized employers also contributed to the expansion.

Geographically, the southern United States recorded the strongest employment growth. Businesses in the region added 47,000 jobs during October.

The western United States followed with 28,000 additional positions. The Midwest added 9,000 jobs, while the Northeast recorded an increase of just 3,000.

These regional differences suggest that employment opportunities are expanding at different rates depending on local economic conditions and industry demand.

Beyond employment growth, the most interesting part of the October report concerns wages.

ADP’s Pay Insights data showed that employees who changed employers experienced substantially stronger base-pay growth than workers who stayed with their existing employers.

Workers who remained in their current positions recorded median annual base-pay growth of 3.0 percent. In comparison, employees who changed jobs experienced median base-pay growth of 4.8 percent.

The difference becomes even more noticeable when total earnings are considered.

According to ADP, gross pay increased by 4.4 percent for employees who stayed with their employers, compared with 7.6 percent for workers who changed jobs.

Gross pay includes earnings beyond regular base wages, such as bonuses and overtime payments. Additional working hours can also contribute to higher total earnings.

ADP Chief Economist Dr. Nela Richardson said employers across different business sizes were hiring during October. She noted that workers changing jobs were attracted by a combination of higher base pay, bonuses, overtime and additional working hours.

According to Richardson, the combined earnings growth for job-changers reached its fastest pace since March 2024.

For American workers, these findings highlight an important feature of the current employment market: changing employers may offer an opportunity to negotiate better compensation.

However, the figures do not mean that every employee will automatically receive a higher salary by switching jobs. Individual results depend on professional experience, qualifications, industry conditions, location and the terms offered by a new employer.

The broader wage figures also provide useful information about purchasing power.

Across all private-sector employees, median base pay increased by 3.2 percent compared with the previous year. Gross pay increased by 4.7 percent.

Although wages continued to rise, the actual improvement in workers’ financial situations depends on how quickly living expenses, housing costs, healthcare expenses and other household costs are increasing.

For workers struggling with rent, groceries, transportation and childcare expenses, higher earnings do not necessarily translate into a substantial improvement in their standard of living.

The October report is particularly relevant for immigrant communities and Bangladeshi Americans working in the United States.

Many Bangladeshi immigrants are employed in transportation, delivery services, healthcare, restaurants, hotels, retail businesses and other service-related industries.

The employment increases reported in several of these sectors may indicate continued opportunities for workers with relevant skills and experience.

For example, the addition of 39,000 jobs in trade, transportation and utilities could be encouraging for people seeking employment in logistics, distribution, transportation and related services.

Similarly, the 28,000-job increase in education and health services suggests that employers in these industries continued recruiting workers.

However, job seekers should remember that national employment figures do not guarantee that vacancies are available in every city or state. Hiring conditions can differ considerably between metropolitan areas and individual employers.

Workers considering changing jobs should also compare more than just the advertised hourly wage or annual salary. Health insurance, retirement contributions, paid leave, overtime arrangements, working hours, job security and opportunities for promotion can significantly affect the overall value of an employment offer.

A new job offering a higher salary may not necessarily provide better financial security if it comes with expensive health coverage, fewer benefits or unstable working hours.

Another important consideration is that the ADP report measures private-sector employment rather than the entire American workforce. It does not include government employment in the same way as the broader federal employment statistics.

Therefore, the ADP report should not be confused with the monthly employment report released by the US Bureau of Labor Statistics.

The government report covers a broader picture of employment, including public-sector jobs, and uses separate statistical methods. ADP and government employment estimates can sometimes differ significantly.

The October ADP figures were released ahead of the government’s scheduled October employment report on November 6, 2026. Economists and financial markets will be watching that report for additional information about hiring, unemployment and wage growth.

The Federal Reserve also pays close attention to employment and wage conditions when making decisions about interest rates. Stronger employment can support household spending and economic activity, but persistent wage increases may also influence inflation pressures.

For now, the October ADP report presents a mixed but generally encouraging picture of the American private-sector labor market. Employers added more jobs than economists had anticipated, several major industries continued hiring, and workers changing employers experienced stronger earnings growth.

At the same time, consecutive job losses in professional and business services indicate that some parts of the economy remain under pressure.

The central message for American workers is that employment opportunities continue to exist, but the benefits are not distributed equally across industries. For employees considering a career move, comparing compensation, benefits and long-term job stability may be just as important as negotiating a higher salary.