U.S. private payrolls rebound in October, but some industries continue to shed jobs

U.S. private payrolls rebounded sharply in October, but the turnaround likely does not suggest a material shift in the labour market because some industries such as professional business services shed jobs for a third straight month.

Private employment increased by 42,000 jobs last month after an upwardly revised decline of 29,000 in September, the ADP National Employment Report showed on Wednesday. Economists polled by Reuters had forecast private employment would rise by 28,000 jobs after a previously reported drop of 32,000 in September.

“Private employers added jobs for the first time since July, but hiring was modest relative to what we reported earlier this year,” said Nela Richardson, chief economist at ADP.

The narrow increase in private payrolls was led by the education and hea