Private sector added 90,000 jobs in September, above expectations, ADP says

• Job gains of 90,000 surpassed the consensus forecast of 70,000 new positions
• September's figure marks a sharp increase from the prior month's revised total of 36,000 jobs
• ADP's chief economist characterized the report as 'strong,' noting that pay growth remained solid alongside the rebound in job creation

Summary: ADP September Employment Report Exceeds Expectations

Key Figures:

The U.S. private sector added 90,000 jobs in September, according to ADP's National Employment Report released Wednesday. This exceeded economist expectations of 70,000 jobs and marked a significant improvement from August's revised figure of 36,000 payrolls.

Main Takeaways:

ADP Chief Economist Nela Richardson characterized the report as "strong," noting that job creation rebounded after a three-month slowdown. Importantly, pay growth remained solid during the period, indicating continued wage momentum alongside employment gains.

Market Implications:

The better-than-expected jobs data suggests resilience in the U.S. labor market despite previous concerns about a slowdown. The report showed:

• A 150% increase from the previous month's revised 36,000 figure
• Nearly 29% above consensus estimates
• Breaking a three-month trend of weakening job creation

Context:

This private sector employment data serves as a preview ahead of the official government employment report. The robust hiring suggests the economy may be maintaining momentum, which could influence Federal Reserve policy decisions regarding interest rates. Strong employment coupled with solid wage growth typically indicates continued consumer spending power, though it may also factor into inflation considerations.

The report provides evidence that labor market conditions remain relatively healthy despite broader economic uncertainties, potentially supporting continued economic growth into the fourth quarter.