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US private sector hiring picked up in September, with employers adding more jobs than anticipated, according to data released Wednesday by payroll firm ADP.
The labor market in the world’s biggest economy has been under heightened scrutiny as the November 5 presidential election approaches — its resilience has helped support consumption but there were concerns that elevated interest rates would weigh on its health.
With the cost of borrowing kept high as the Federal Reserve sought to cool demand, policymakers have been walking a tightrope between tackling inflation without triggering an economic downturn.
But on Wednesday, ADP data showed that private sector employment rose by 143,000 jobs, significantly higher than the 120,000 figure that a consensus by Briefing.com expected.
“Job creation showed a widespread rebound after a five-month slowdown,” ADP said in a report.
“Manufacturing added jobs for the first time since April,” it added.
ADP chief economist Nela Richardson added that “stronger hiring didn’t require stronger pay growth” either.
Annual pay was up 4.7 percent, with wage gains falling slightly according to the report.
Among sectors, services-providing industries added most jobs, with many in the leisure and hospitality segment.
With the Fed starting to lower interest rates in September as well, this could give the US economy a further boost as borrowing costs shift lower.
Analysts are also closely eying official employment data due on Friday, for a better idea of the labor market’s health.
The economy remains one of the key focal points for voters in next month’s election.
bys/des
