Payroll in the private sector increased by 230,000 in September from 185,000 East: ADP

If the current pace continues, Zandi said he expects the unemployment rate to fall by nearly 3% over the next year. The overall unemployment rate is currently 3.9%.

The ADP / Moody count arrives two days before the report on non-farm wages closely monitored by the Department of Labor. Economists also expect this report to indicate an employment growth of 185,000 people.

The jump came despite the turmoil caused by Hurricane Florence, which ravaged the Carolinas and which should weigh heavily in the number of jobs. The nature of the ADP methodology is such that it does not include the victims of the storm because it only counts employees on the payroll and does not take into account the displaced people. by temporary events.

"That exaggerates the case a little bit," said Zandi. He added that the actual number could drop by around 25,000 once the impact of the storm is taken into account.

Job gains were distributed across all industries, with services leading with 184,000. Professional and business services accounted for 70,000, followed by education and health services, with 44,000 , and commercial services, transportation and utilities, with 30,000 new jobs. Leisure, hospitality and financial services each grew by 16,000 people.

There were, however, several weak notes. The manufacturing industry added only 7,000 units, its lowest figure in a year, while Zandi said retail banks and mortgage banks were also weak.

Companies with 51 to 499 employees added the most by size, with 99,000 new hires. Large companies added 75,000 people and small businesses, 56,000.

The count of private salaries in August was revised upward by 5,000.

The report comes at a good time for the economy, whose GDP growth in the second quarter is 4.2%, which could also exceed 4% in the third quarter. In a speech on Tuesday, Federal Reserve Chairman Jerome Powell called the economic outlook of the forecasters "remarkably positive".