Wednesday, October 27, 2021

US private payrolls beat expectations in September

WASHINGTON—US private payrolls rose more than expected in September as COVID-19 infections began to ease, boosting hiring at restaurants and other high-contact businesses.

The ADP National Employment Report on Wednesday showed that private payrolls increased by 568,000 jobs last month. Data for August was revised lower to add 340,000 jobs instead of the 374,000 initially reported. Economists polled by Reuters estimated that the private payroll would add 428,000 jobs.

“Strong job growth in September could indicate that the recent rise in coronavirus cases is driving down hiring,” said Gus Faucher, chief economist at PNC Financial in Pittsburgh, Pennsylvania. Employment gains in the third quarter averaged 410,000 jobs, a slowdown compared to the second quarter average of 748,000. Last month, the leisure and hospitality industry added 226,000 jobs after creating 155,000 positions in August.

Manufacturing payroll increased by 49,000 jobs, while hiring at construction sites also increased by 49,000. Job gains in other sectors were modest. Large companies contributed to job creation last month, followed by medium-sized companies. Small businesses’ hiring climbed to 63,000 after rising 61,000 in August.

The ADP report is jointly developed with Moody’s Analytics and was published Friday ahead of the Labor Department’s more comprehensive and closely watched employment report for September.

Although it flagged a sharp slowdown in job growth in August, it has a largely poor record of predicting private payroll counts in the department’s Bureau of Labor Statistics (BLS) employment report due to methodological differences.

A Now Hiring near the entrance of a Ross department store on September 21, 2021 in Hollandael, Fla. (Joe Radl/Getty Images)

Daniel Silver, an economist, said: “Today’s numbers broadly support our view that the labor market continues to improve and job growth increased in September relative to August, but the ADP report has not been a very reliable predictor of BLS data.” Is.” At JP Morgan in New York.

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The focus now turns to the September government employment report, which will be crucial for the Federal Reserve as the US central bank last month indicated it would begin reducing its monthly bond purchases as of November.

Economists say the bar is low after Fed Chair Jerome Powell said last month that the economy had a “decent” monthly employment report that fell short of meeting the threshold for easing its massive bond buying program.

Non-farm wages are expected to add 473,000 jobs in September, according to a Reuters survey of economists. The economy created 235,000 jobs in August, the lowest in seven months. The unemployment rate is projected to fall to 5.1 percent from 5.2 percent in August.

“It seems likely that gains in employment would qualify as ‘decent,'” said Paul Ashworth, chief economist at Capital Economics in Toronto.

But labor market indicators remained mixed in September. A survey by the Conference Board last week showed that consumer sentiment about the current labor market situation has softened.

The number of people on the state’s unemployment roll fell in mid-September relative to mid-August. The Institute for Supply Management’s measure of manufacturing employment rebounded last month after contracting in August. But ISM’s gauge of service industry employment slipped, with businesses reporting that “labor shortages (at all levels) were experienced.”

Lucia Mutikani. By

Reuters

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This News Originally From – The Epoch Times

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