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US private sector added 235,000 jobs in Oct, vs 200,000 new jobs expected: ADP

The number of private-sector jobs created in October rose more than expected, with construction jobs surging in the wake of destructive hurricanes Harvey and Irma.

The ADP National Employment showed private-sector businesses added 235,000 jobs in the month. ADP was expected to show private employers added 200,000 jobs in October, up from 135,000 in September.

Goods-producing companies benefited strongly with 85,000 new jobs, 62,000 of which came from construction. Manufacturing also saw 22,000 positions added.

Overall, the service sector accounted for the bulk of the job creation, adding 150,000 jobs. Professional and business services added the most positions, up 109,000. Job losses were seen in the trade, transportation, and information sectors, as well as education.

"The job market rebounded strongly from the hit it took from Hurricanes Harvey and Irma," Mark Zandi, chief economist of Moody's Analytics, said in a statement. "Resurgence in construction jobs shows the rebuilding is already in full swing. Looking through the hurricane-created volatility, job growth is robust."

Leisure and hospitality contributed 45,000 to the total while health care and social assistance grew by 44,000.

In terms of business size, job gains were spread evenly, with companies that have more than 500 employees hiring 90,000 while those with fewer than 50 added 79,000.

The ADP count comes two days ahead of the government's nonfarm payrolls report. Economists largely expect a sharp rebound for the official count, which showed a loss of 33,000 jobs in September. FactSet estimates payrolls increased by 309,000.