On Wednesday ADP reported 154K private sector jobs were created in September, marking a 12% month over month dip from August’s revised number of 175K.
September’s company job growth is the lowest gain in six months, indicating that the U.S. labor market continues to narrow as it etches closer to full employment.
Friday’s Department of Labor’s Non-Farm Payroll Report is expected in the range of 169K – 176K, a slight jump from August’s 151K. Additionally, economists predict that the unemployment rate, which excludes part-time and those not seeking employment, to maintain at 4.9%. One interesting note, wage growth is expected to rise .2% to .3%, a significant jump that would certainly indicate a healthy labor market.
The FED’s rely on monthly payroll reports to provide insight on the state of the labor market which aid in their decisions when considering interest rate adjustments. Many economists remain confident that a December hike is on the way once the U.S. Presidential Election has concluded.
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