Overview
- ADP's report, which was released Wednesday, showed private employment rose by 90,000 in September after a three-month slowdown.
- Education and health services led hiring with 55,000 new positions while leisure and hospitality, manufacturing and construction added 22,000, 17,000 and 15,000 respectively and financial activities and professional services saw job losses.
- ADP reported base pay rose 3.2% year-over-year and gross pay climbed 4.7%, with workers who changed jobs seeing bigger wage gains than those who stayed.
- The ADP measure draws on anonymized payroll records covering about 26 million workers and tracks private-sector jobs only, so economists view it as a useful but imperfect precursor to the BLS nonfarm payrolls due Friday.
- A stronger ADP print may ease concerns about a labor slowdown and could shape market and Federal Reserve expectations about inflation and interest rates while signaling hiring opportunities in education and health fields.