The jobs market got good news on Thursday September 6 in the weekly report as unemployment claims fell for the first time in four weeks and more jobs were added than were expected. Private sector jobs increased by 201,000 during the month of August.
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It was surprisingly ahead of analysts’ estimates of 145,000. The July estimate was revised upward to 173,000 from the 163,000 originally reported. The expectation for non-farm payrolls is for an increase of 125,000.
The unemployment rate is expected to remain unchanged at 8.3% but, in fact, dropped to 8.1% because people are giving up on finding a job.
The Automatic Data Processing Inc. (ADP) estimates have been significantly off over the past few months. The ADP only measures private sector jobs. For example in June, ADP projected an increase of 175,000 jobs when only 80,000 were actually created.
Unemployment claims measure the number of layoffs. In the week ending August 25, claims were revised upward to 377,000 from 374,000. For the week ended September 1, claims fell 12,000 to 365,000.
Readings above 50 indicate expansion.