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Newhampshire News Online

Businesses added 200,000 jobs in September

Businesses added 200,000 jobs in September

The private sector added 200,000 jobs in September, payroll processor ADP said Wednesday, in a possible sign that the government will report that employment growth rebounded after slowing the previous month. Economists surveyed by Bloomberg estimated ADP would report that businesses added 190,000 jobs. They predict the Labor Department’s closely watched survey of private and public sector hiring, due Friday, will count 202,000 job gains.

That report could be critical in helping the Federal Reserve decide whether to raise its benchmark interest rate for the first time in nearly a decade at its October meeting. The Fed declined to hike the rate last month but indicated it still expects to act this year. Labor has tallied a solid average of 212,000 job gains a month this year, but advances in August slowed moderately to 173,000

ADP tries to foreshadow Labor’s private-sector additions, but has differed from its initial estimate by an average 45,000 a month over the past year, according to an analysis by High Frequency Economics. In September, ADP said, large companies added 106,000 jobs, midsize ones, 56,000, and small businesses, 37,000. Trade, transportation and utilities led the job gains with 39,000. Construction added 35,000 amid the recent solid recovery in housing starts, and professional and business services added 29,000. Manufacturers cut 15,000 jobs as the strong dollar continued to dampen US exports.

“The largest companies appear to be starting to overcome the impacts of 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,” said Ahu Yildirmaz, VP and head of the ADP Research Institute.