Private-sector employment soared in September, as employers added 230,000 jobs, Automatic Data Processing Inc. reported Wednesday. This is the highest since February. The gain was well above forecasts from economists polled by Econoday, who had expected on average an increase of 179,000. August's gain was upwardly revised to show 168,000 growth instead of a previously estimated 163,000.
Details of ADP's report showed that small firms added 56,000 jobs in September, medium-sized businesses added 99,000 to large companies added 75,000.
The labor market has been on fire this year, with job gains averaging 207,000 per month over the first 8 months of the year.
Economists use ADP’s data to get a feeling for the Labor Department’s employment report, which will be released Friday and covers government jobs in addition to the private sector. The ADP gain is well above estimates of the government’s data according to economists polled by MarketWatch.
Economists polled by MarketWatch expect the Labor Department’s nonfarm payroll jobs rose 168,000 in September, down from 201,000 in the prior month. The unemployment rate is expected to slip to 3.8% from 3.9% in August. That would match the level hit in May.