Private sector employment growth rose in September on a sign of strength in the US jobs market.
What happened: Private sector employment rose by 208,000 jobs in September, according to to a new ADP National Employment Report. The number rose from a revised 185,000 in August and also came in above-average economist estimates of 200,000.
Annual salary increased by 7.8% year-on-year.
Manufacturing industries reported a loss of 29,000 jobs, but this was more than offset by an increase of 147,000 in trade, transportation and utilities.
Information and financial services fell 19,000 and 16,000, respectively, while professional and business services grew 57,000, education and health services rose 38,000, and leisure and hospitality rose 31,000.
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Why it matters: That SPDR S&P 500 SPY ticked slightly lower at release. The ADP report comes just days ahead of the nonfarm payrolls report, and the Federal Reserve will be watching closely as it attempts to tame runaway inflation.
Last month, the Fed raised interest rates by 0.75% for the third consecutive month and indicated that they will continue to rise well above current levels.
The 0.75% rate hike pushed the target rate for fed funds to a new range of 3% to 3.25%, the highest level since the 2008 financial crisis.
In a press conference after the interest rate decision, the Fed chair said Jerome Powell reiterated the central bank’s commitment to bring inflation back to its 2% target.
“Restoring price stability is essential to create the conditions for maximum employment and stable prices in the long term. We’re going to hold onto it until we’re satisfied the job is done,” Powell said.
SPY Price Action: SPY was down 0.99% on Wednesday morning at $374.18 Gasoline Pro.
Photo: Flazingo Photos by Flickr.
