U.S. private payrolls rise by 86,000 in October, ADP says

The U.S. private sector added more jobs than expected in October, according to data from ADP, a private employer monitoring firm. This rise in private payrolls suggests a robust labor market heading into a significant Federal Reserve interest rate decision. ADP's figures showed private payrolls increasing by 86,000 in October, matching a revised figure from September, which surpassed economists' expectations of a 67,000 increase.

The economists noted that job changes were fueled by bonuses, overtime, and extended hours, coupled with higher base pay. The ADP report, developed jointly with the Stanford Digital Economy Lab, precedes the release of more comprehensive government job statistics by the Bureau of Labor Statistics (BLS) on Friday. Historically, ADP's data has not accurately predicted BLS's separate report.

However, the BLS estimates nonfarm payrolls rose by 63,000 in October, compared to a 29,000 increase in the previous month. The unemployment rate remains stable at 4.2%, similar to the previous month. Recent data indicated a spike in U.S. job openings and a drop in layoffs to a 1-1/2-year low, suggesting a stable employment landscape.

Fed policymakers aim to control inflation, and the upcoming BLS report could influence their final rate decision in December. The odds of a rate hike at the meeting stand at 79%, according to the CME FedWatch.