Private sector adds 106,000 jobs in October

NEW YORK (Reuters) - Private employers added a 106,000 jobs in October, a report by a private employment service said on Wednesday, beating economists' estimates.

ADP Employer Services said it revised the number of jobs created in September to 61,000 from 58,000.

The consensus forecast of 22 economists surveyed by Reuters was for the ADP report to show 60,000 new private sector jobs in October.

"Small- and medium-size businesses more than accounted for the increase in total employment in October, with employment among these businesses advancing by 113,000," said Joel Prakken, chairman of St. Louis-based Macroeconomic Advisers LLC, which developed the report with ADP.

The better-than-expected job gain may bode well for the government's more comprehensive non-farm payrolls report, which also includes public sector jobs.

According to the latest Reuters poll of economists, the Labor Department is expected to report on Friday that public and private employers added 80,000 non-farm jobs in October, down from 110,000 the prior month.

Employment in the service sector of the economy grew by 134,000 in October, ADP said, more than making up for a 28,000 job decline in the goods-producing sector.

The number of jobs declined in residential construction and financial activities in the fallout from mortgage market problems and tighter credit conditions.

Construction sector employment fell 16,000 in October, the 13th decline in the last 14 months, while the financial sector shed 1,000 jobs, its third straight monthly decline after nearly six years of uninterrupted growth.

Automatic Data Processing, based in Roseland, New Jersey, is the parent of ADP Employer Services and is a large payroll services company.