U.S. creates 227,000 private-sector jobs in October, ADP says

The numbers: ADP on Wednesday reported 227,000 new private-sector jobs in October. Economists polled by Econoday had expected 178,000 new jobs.

The September total for jobs added was revised down from an initial 230,000 to 218,000, ADP said.

What happened: Large businesses, meaning those with about 500 employees or more, led the way, as they added 102,000 jobs. Mid-sized enterprises (50-499 employees) added 96,000 positions, while small employers, or those with one to 49 workers, tacked on 29,000 jobs.

Among sectors, about 61,000 jobs were added in the trade, transportation and utilities category, while the leisure and hospitality category was another top performer, reporting 40,000 new jobs.

Big picture: The American employment picture continues to appear strong, with the official U.S. government report on payrolls due Friday. Economists polled by MarketWatch expect the Labor Department to report 202,000 new jobs in October and a 3.7% unemployment report.

The Labor Department report includes jobs from both the public and private sectors.

What they’re saying: The report was “an upside surprise,” and it “may add to the positive sentiment in equities,” said Scott J. Brown, chief economist at Raymond James, in an email.

“These data suggest no appreciable job impact from recent hurricanes,” Brown added.

“Despite a significant shortage in skilled talent, the labor market continues to grow,” said Ahu Yildirmaz, vice president and co-head of the ADP Research Institute, in a statement. “We continue to see larger employers benefit in this environment as they are more apt to provide the competitive wages and strong benefits employees desire.”

Mark Zandi, chief economist of Moody’s Analytics, also noted the competition between big and little companies.

“The only blemish is the struggles small businesses are having filling open job positions,” Zandi said.