U.S. private payrolls increased more than expected in September as COVID-19 infections started subsiding, boosting hiring at restaurants and other high-contact businesses.
The ADP National Employment Report released on Wednesday supported expectations that job growth picked up last month, though it has a poor record predicting the private payrolls count in the Labor Department’s more comprehensive and closely watched employment report.
September’s employment report due on Friday will garner more attention after the Federal Reserve signaled last month that it would likely begin reducing its monthly bond purchases as soon as November. Fed Chair Jerome Powell believes the economy is one “decent” monthly employment report short of meeting the U.S. central bank’s threshold for tapering its bond buying program.
“It looks like the gain in employment will qualify as ‘decent’,” said Paul Ashworth, chief economist at Capital Economics in Toronto. “Nevertheless, it is worth remembering that the first estimate from the ADP is not a particularly good predictor of official payrolls.”
Click here to read the full piece by Lucia Mutikani in Reuters.com.
