The numbers: U.S. private-sector employment increased by 568,000 in September, according to the ADP National Economic Report released Wednesday. The gain was well above forecasts from economists surveyed by the Wall Street Journal who expected a gain of 425,000 jobs. It is the biggest gain since June.
Big picture: The data is in line with economists expectations for Friday’s job report for September from the Labor Department. Economists expect the Labor Department report will show economy added a net 500,000 jobs in September, up from the disappointing 235,000 jobs added in August, according to a Wall Street Journal poll. The unemployment rate is expected to tick down to 5.1% from 5.2%.
However, during the pandemic, the ADP survey has been a poor bellwether of month-to-month for the Labor Department’s employment report.
Key details: The service sector added 466,000 jobs in September, led by a strong 226,000 jobs added in the leisure and hospitality sector.
Goods producers added 102,000 jobs in September, the strongest gain in a year. Construction added 46,000 jobs, also the most since last September. Manufacturing employment rose by 49,000 jobs.
Large companies had the largest gains in September, adding 390,000 jobs. Medium-sized companies added 115,000 jobs while small firms added 63,000.
Market reaction: Stocks
DJIA,
+0.92%
SPX,
+1.05%
were set to open lower on Wednesday but not by as much as before the ADP data was released.
