Washington (AFP) – US private sector hiring picked up in September, with employers adding more jobs than anticipated, according to data released Wednesday by payroll firm ADP. ADP data showed private sector employment rose by 143,000 jobs, significantly higher than the 120,000 figure that a consensus by Briefing.com expected.
The labor market in the world’s biggest economy has been under heightened scrutiny as the November 5 presidential election approaches, with polls consistently showing economic concerns are a top priority for voters. The Federal Reserve has also been closely monitoring employment data, as it walks a tightrope of tackling inflation without triggering an economic downturn.
“Job creation showed a widespread rebound after a five-month slowdown,” ADP said in a report. “Manufacturing added jobs for the first time since April,” it added. August’s job gains were revised upwards from 99,000 to 103,000. ADP chief economist Nela Richardson added that “stronger hiring didn’t require stronger pay growth” either. Annual pay was up 4.7 percent, with wage gains falling slightly according to the report.
Among sectors, services-providing industries added most jobs, with many in the leisure and hospitality segment. With the Fed starting to lower interest rates in September, this could give the US economy a further boost as borrowing costs shift lower. Analysts are also closely eying official employment data due on Friday, for a better idea of the labor market’s health.
The economy remains one of the key focal points for voters in next month’s election. If ADP’s figures accurately foreshadow the official payrolls report, the unemployment rate will be unchanged and job creation will accelerate “after a disappointing result for August,” said economists Carl Weinberg and Rubeela Farooqi of High Frequency Economics. But they conceded that both reports can sometimes diverge.
Samuel Tombs, chief US economist at Pantheon Macroeconomics, said that other economic indicators suggest a cooler private payrolls increase — maintaining pressure on the Fed to lower rates again next month.
© 2024 AFP
