ADP report shows jobs growth as white-collar layoffs accelerate

Core Insights - The ADP jobs report indicates a mixed U.S. economy, with 42,000 jobs added in October and annual pay growth remaining at 4.5% [1][6] - There is a significant disparity between sectors, with growth in education, health care, and trade, while white-collar industries are experiencing job losses [3][4] Sector Analysis - Job gains were primarily in education and health care (+26,000) and trade, transportation, and utilities (+47,000), while professional and business services (–15,000), information (–17,000), and leisure and hospitality (–6,000) saw continued job losses [3] - The economy is described as "bifurcated," with low-income and service-sector workers remaining employed but facing inflationary pressures, while higher-income white-collar workers are experiencing layoffs [4] Economic Context - The ADP report serves as a critical indicator of hiring trends amid a lack of official data due to the Bureau of Labor Statistics being closed [5] - The Federal Reserve is likely to view the report with concern, as it reflects modest job growth and stagnant pay, suggesting the economy is not in a state of recovery [6]