US private payrolls beat expectations in September
2024.10.02 08:45
WASHINGTON (Reuters) – U.S. private payrolls increased more than expected in September, further evidence that labor market conditions were not deteriorating.
Private payrolls increased by 143,000 jobs last month after rising by an upwardly revised 103,000 in August, the ADP National Employment Report showed on Wednesday.
Economists polled by Reuters had forecast private employment increasing by 120,000 positions after a previously reported gain of 99,000 in August.
The ADP report, jointly developed with the Stanford Digital Economy Lab, was published ahead of Friday’s more comprehensive and closely watched employment report for September from the Labor Department’s Bureau of Labor Statistics.
There is not much correlation between the ADP and BLS employment report. Initial ADP prints have mostly understated private payroll growth this year.
Government data on Tuesday showed the labor market continues to hum along, with 1.13 job openings for every unemployed person in August compared to 1.08 in July. Sluggish hiring against the backdrop of an immigration-driven surge in labor supply is behind the labor market slowdown.
The Federal Reserve last month cut its benchmark interest rate by an unusually large 50 basis points to the 4.75%-5.00% range, the first reduction in borrowing costs since 2020, in a nod to rising concerns over the labor market’s health.
The U.S. central bank is expected to cut interest rates again in November and December.
Private payrolls likely increased by 125,000 in September after rising by 118,000 in August, a Reuters survey of economists showed. With solid gains in government employment expected, nonfarm payrolls are forecast to have increased by 140,000 last month after advancing by 142,000 in August
The unemployment rate is forecast unchanged at 4.2%. It has increased from 3.4% in April 2023.
