US private sector adds 239,000 jobs in October beating expectations

By Ovunc Kutlu

ANKARA (AA) - US private payrolls rose by 239,000 in October, well above expectations, according to data released Wednesday.

The estimate was for the number to increase by 195,000 after the American economy created nearly 192,000 private jobs in September, ADP Research Institute said in a joint report prepared with Stanford Digital Economy Lab.

"This is a really strong number given the maturity of the economic recovery, but the hiring was not broad-based," ADP chief economist Nela Richardson said in the report.

Small and medium-sized businesses added 25,000 and 218,000 jobs, respectively, while large businesses saw a loss of 4,000.

The leisure and hospitality sector posted the highest gain with 210,000 additions, while the manufacturing industry saw the largest decline with 20,000 job losses.

"Goods producers, which are sensitive to interest rates, are pulling back, and job changers are commanding smaller pay gains. While we're seeing early signs of Fed-driven demand destruction, it's affecting only certain sectors of the labor market," added Richardson.