The latest ADP Employer Services poll says the private sector added 162,000 new jobs in September. Not only that, but the August numbers were revised upward to 189,000 new jobs. The median forecast was for 140,000 new jobs to be added.
This Website Is For Financial Professionals Only
Small and medium size businesses are driving the improvement in unemployment. The report will bolster consumer confidence and will translate to sustainable economic growth.
The Labor Department report due on Friday, October 5 will likely report 128,000 new jobs were created with the unemployment rate at 8.2%, up from the 8.1% report in August. The August report was reflective of more people giving up job searches and so, was not viewed as an improvement.
Over the past two years, the ADP report has either overstated or understated the Labor Department report by an average of 66,000. The average miss by Bloomberg economists has been 58,000.
The Fed renewed its commitment this week to continue record stimulus efforts
with the goal of improving employment even after the economy gains momentum.
In Friday’s Labor Department report, overall hiring is expected to show 115,000 net jobs were created including government jobs. The unemployment number has been above 8% for the longest period since 1948 when monthly records began.