Private sector jobs rose by 90,000 in September, better than expected, ADP reports
Private job creation picked up in September after a brief slowdown.
The September private sector job growth of 90,000, as reported by ADP, exceeded expectations and suggests that the labor market remains resilient. This is a positive sign for the economy, as it indicates that businesses continue to hire, despite some concerns about a potential slowdown. The ADP report is often seen as a precursor to the official non-farm payroll numbers, which are due out later this week.
The increase in private sector jobs in September follows a brief slowdown in August, which saw a gain of 68,000 jobs, revised down from 69,000. The September figure is more in line with the average monthly gain of around 100,000 jobs seen so far this year. The services sector accounted for the majority of the job gains, with 83,000 jobs added, while the goods-producing sector added 7,000 jobs.
Looking ahead, all eyes will be on the official non-farm payroll numbers, due out on Friday, for further confirmation of the labor market's strength. Economists are expecting a gain of around 170,000 jobs in September, with the unemployment rate expected to hold steady at 3.7%. Any significant deviation from these expectations could have implications for monetary policy, with the Federal Reserve having recently cut interest rates to support the economy.
Originally reported by cnbc.com. InvestorsWire adds analysis for finance & markets readers.