Payroll processor ADP released a report on Wednesday showing another significant increase in employment in the U.S. private sector in the month of October.
ADP said private employment jumped by 227,000 jobs in October after surging up by a downwardly revised 218,000 jobs in September.
Economists had expected an increase of about 189,000 jobs compared to the addition of 230,000 jobs originally reported for the previous month.
The stronger than expected job growth in October reflected the biggest increase in private sector employment since a jump of 241,000 jobs in February.
"Despite a significant shortage in skilled talent, the labor market continues to grow," said Ahu Yildirmaz, vice president and co-head of the ADP Research Institute. "We saw significant gains across all industries with trade and leisure and hospitality leading the way."
She added, "We continue to see larger employers benefit in this environment as they are more apt to provide the competitive wages and strong benefits employees desire."
The report said employment in the service-providing sector surged up by 189,000 jobs, while employment in the goods-producing sector climbed by 38,000 jobs.
Employment at small businesses rose by 29,000 jobs, employment at medium-sized businesses jumped by 96,000 jobs and employment at large businesses shot up by 102,000 jobs.
"Testimonial to the robust employment picture is the broad-based gains in jobs across industries," said Mark Zandi, chief economist of Moody's Analytics. "The only blemish is the struggles small businesses are having filling open job positions."
On Friday, the Labor Department is scheduled to release its more closely watched monthly jobs report, which includes both public and private sector jobs.
Employment is expected to climb by 190,000 jobs in October after rising by 134,000 jobs in September, while the unemployment rate is expected to hold at 3.7 percent.
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