Today it was reported that U.S. private sector employment increased by 200,000 in September, according to ADP, matching a forecast of 200,000 from briefing.com.
The ADP report shows that service-providing employment rose by 188,000 jobs in September, up from 172,000 in August.
Employment gains at large companies, those with 500 or more employees, rose significantly from August, adding 106,000 jobs in September.
“Business with more than 1,000 employees contributed over half of the job gains in September, despite weakness in energy and manufacturing” said Ahu Yildirmaz, VP and Head of the ADP Research Institute, in a released statement.
“The largest companies appear to be starting to overcome the impacts of the weak global demand and the high dollar, while the smallest companies may have pulled back as concerns about the resiliency of the U.S. economy grew and consumer confidence softened” Yildirmaz added.
The construction industry added 35,000 jobs in September, nearly double the 18,000 increase in August.
Manufacturing dropped into negative territory after losing 15,000 in September, the worst reading since December 2010.
“The U.S. job machine continues to produce jobs at a strong and consistent pace. Despite losses in the energy and manufacturing industries, the economy is creating close to 200,000 jobs per month. At this pace full employment is fast approaching” said Mark Zandi, chief economist at Moody’s Analytics, in a released statement.
Today’s ADP private sector report for September is a precursor for Friday’s non-farm payroll report from the Bureau of Labor Statistics.
Economists from Briefing.com forecast an increase of 200,000 jobs in September while the unemployment rate is expected to be unchanged at 5.1 percent.