Private Payroll Numbers: A Bearish Signal for Labor Market?
Despite forecasts of robust job growth, ADP’s recent report reveals a surprisingly low addition of 89,000 private-sector jobs in September, falling far below economists’ estimates of 160,000. This slow growth in private employment suggests a weaker-than-anticipated labor market, posing questions for the Federal Reserve’s future monetary policy decisions.
Contrary to Previous Indicators
This unexpected downturn in job growth contradicts other positive signs in the labor market. Just a day earlier, the Labor Department had indicated an unexpected rise in job openings for August. The ADP numbers mainly reflect contributions from the services sector, which added 81,000 jobs. Interestingly, leisure and hospitality outpaced other sectors, accounting for 92,000 new jobs.