Private Sector Hiring Surges
Private sector hiring surged in September with 143,000 new jobs added, exceeding expectations and showing strength despite concerns about wage growth slowing. This increase, reported by payroll firm ADP, sets the stage for the Labour Department’s closely watched nonfarm payroll (NFP Report) announcement, due soon.
Labour Market Outlook Ahead of NFP Report
The ADP report suggests the labour market is holding steady, potentially signalling a positive outcome for the NFP report, which is expected to show 150,000 jobs added. However, ADP and NFP figures don’t always align perfectly, and variations are possible.
Job Gains Led by Leisure, Hospitality, and Construction
Leisure and hospitality led the gains with 34,000 jobs, followed by construction and education. Small businesses faced challenges, losing 13,000 positions, while larger companies drove most of the growth.
Impact on Federal Reserve’s Rate Decisions
As the Federal Reserve watches these labour reports closely, signs of job market resilience could shape the Fed’s next steps on interest rate adjustments.
While further rate cuts are expected, the ADP data hints that the labour market may remain strong enough to see smaller, more gradual cuts in the months ahead.
Stay tuned to next week’s Weekly Market Spotlight instalment.
