- The US added 749,000 private payrolls in August, according to ADP’s monthly employment report.
- The total beat the median economist estimate of 649,000 payrolls, according to estimates compiled by Bloomberg.
- The report precedes the US government’s nonfarm payrolls report slated for Friday release.
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Private-sector hiring accelerated through September as the US labor market’s recovery charged onward.
US companies added 749,000 payrolls last month, according to the ADP monthly employment report published Wednesday. That beat the median economist estimate of 649,000 payrolls, according to forecasts compiled by Bloomberg. The sum also exceeded the revised 481,000 reading for August.
“The labor market continues to recover gradually,” Ahu Yildirmaz, vice president and co-head of the ADP Research Institute, said in a statement, adding that “small businesses continued to demonstrate slower growth.”
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The monthly ADP report is viewed as a prelude to the government’s monthly nonfarm payrolls report released the following Friday. Economists expect the government’s release to show the unemployment rate falling to 8.2% in September, down from 8.4% the prior month. They also expect 850,000 US payroll additions for the month.
To be sure, ADP’s data has lagged the government’s report in recent months and signaled gloomier trends than nonfarm payrolls data has shown.
The September gains were primarily driven by hiring in the trade, transportation and utilities, and manufacturing sectors, according to the report. Businesses with at least 500 employees accounted for 297,000 of the monthly payroll additions, while mid-sized businesses added 259,000 roles. Firms with no more than 49 employees contributed 192,000 payroll additions.
ADP’s print also arrives after new US jobless claims unexpectedly ticked higher for the week ended September 19. Filings for unemployment benefits totaled 870,000, missing economists’ estimate of 840,000 and climbing from the week prior. The jump keeps claims at historically high levels and indicates lingering pain in the US labor market.
Recent announcements suggest a full recovery is still far out. Disney said on Wednesday it plans to fire 28,000 workers in its weakening theme park business. Royal Dutch Shell will lay off up to 9,000 workers as stagnant crude oil demand forces firms to cut costs.
New claims for the week ended Saturday are scheduled for release Thursday morning.
This story is breaking, check back soon for updates.
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