US ADP non-farm payrolls rise by 42,000 in October, beating forecasts

U.S. non-farm private sector employment increased by 42,000 jobs in October, surpassing the forecast of 32,000, according to the National Employment Report from Automatic Data Processing (ADP). The ADP report, compiled from the payroll data of over 500,000 client companies, is released ahead of the official employment data from the U.S. Department of Labor. Unlike the ADP figure, the official government report also includes public sector employment changes. The Federal Reserve closely monitors employment data when making interest rate decisions. Strong job growth could lead the Fed to raise or hold interest rates to prevent economic overheating, while weak figures might prompt consideration of rate cuts to stimulate the economy.