Private-sector payrolls grew modestly in October, adding 42,000 jobs and slightly exceeding expectations, according to ADP.

Gains were concentrated in large companies (250+ employees), which added 76,000 jobs, while smaller businesses lost 34,000 positions, raising concerns since small firms generate most U.S. jobs.

The trade, transportation, and utilities sector led growth with 47,000 jobs, followed by education and health services (+26,000) and financial activities (+11,000), while information services (-17,000), professional/business services (-15,000), other services (-13,000), and manufacturing (-3,000) saw declines.

Wages continued to rise, with year-over-year pay growth at 4.5% for existing employees and 6.7% for job switchers, CNBC has reported.

With the government shutdown delaying the official BLS report, ADP data and upcoming indicators such as layoffs, jobless claims, and consumer sentiment are being closely watched to gauge labor market health.