Investors and economists eagerly anticipate the Federal Reserve’s decision on interest rates, as it will have a significant impact on market dynamics and provide insights into the central bank’s outlook on the economy.
According to new data released by payroll processor ADP, employment in the US private sector rose by an estimated 113,000 jobs in October. This steady gain in jobs is expected to continue propelling consumer spending, which is crucial for the economy.
ADP’s latest National Employment Report also revealed that annual pay was up 5.7%, indicating positive growth in wages. However, Nela Richardson, the chief economist of ADP, noted that there was no dominant industry in terms of hiring this month, and the significant post-pandemic pay increases seem to be behind us.
Despite this, the resilience of the nation’s labor market has helped sustain spending, economists have said. The October job growth was an improvement from September when ADP reported a net gain of only 89,000 jobs, falling short of economists’ expectations.
However, the October private-sector job growth also fell below economists’ predictions, with the consensus forecast expecting private-sector employers to hire an additional 150,000 workers. It is important to note that ADP’s tabulations do not always correlate with the official federal jobs report, which is due out on Friday. Nevertheless, ADP’s report is often seen as a proxy for overall hiring activity.
Looking ahead, economists anticipate that the Bureau of Labor Statistics (BLS) jobs report for October will show a more moderate, yet still strong, increase of 180,000 jobs, according to Refinitiv estimates.
Overall, the steady gain in employment and wage growth in the private sector is promising for the US economy. Continued job growth is vital for sustaining consumer spending and driving economic recovery.