ADP Shows Payrolls Recovery in September
ADP has released its September private sector payrolls data. This is used by economists and traders as a barometer for each month's U.S. Labor Department payrolls report. ADP said private sector payrolls came in at 213,000 in September, above the 200,000 expected by Bloomberg. This news is solid, but not likely so solid that the investment community will need to fear any wrath from the Federal Reserve.
The report, which is derived from ADP's actual payroll data, measures the change in total nonfarm private employment each month on a seasonally adjusted basis and is broken out by small, medium-sized and large businesses.
ADP said that private sector small business employment increased by 88,000 jobs from August to September. Of that group, businesses with one to 19 employees had 48,000 payrolls and businesses with 20 to 49 employees had 39,000 more payrolls in the month. Medium-sized businesses added 48,000 payrolls and large businesses added 77,000 payrolls.
Friday's unemployment report from the Labor Department should not have any massive numbers changed by economist estimates as this ADP report was close enough to expectations. We have shown how Friday's estimates would compare to the prior month's unrevised readings. Bloomberg has the following consensus estimates from its pool of economists for Friday:
- Nonfarm payrolls expected to be 215,000 (up 73,000)
- Private payrolls expected to be 215,000 (up 81,000)
- Unemployment expected to be 6.1% (flat)
- Average hourly earnings up 0.2% (flat)
- Average workweek 34.5 hours (flat)
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Filed under: Economy