Employers in the US private sector increased hiring in September, showing that there is still a demand for workers despite the rise in interest rates and the tightening of financial conditions.
The figure, released by ADP on Wednesday, came in the wake of reports on Tuesday showing that in August, employment plummeted to its lowest point in almost two and a half years.
According to the study, there were 208 thousand more jobs employed in the private sector last month, while the reading for the number of jobs added in August was revised upward to 185 thousand from the original reading of 132 thousand jobs.
Reuters polled economists, who predicted a gain of 200,000 jobs in the private sector.
All of the jobs added in January were in the services sector, which had a 237,000 job increase.
On Friday, the Labor Department is expected to release its September employment report.
Reuters polled economists who predicted that the US private sector would add 270,000 jobs last month after increasing by 308,000 in August, even though the economy added 315,000 jobs that month.
According to a separate data released on Wednesday by the Commerce Department, the trade deficit decreased by 4.3% to $67.4 billion in August, the lowest amount since May 2021.
GDP growth forecasts for the July-September quarter are at 2.3% y/y, and the economy declined by 0.6% in the second quarter. A reduced trade deficit could increase GDP in the third quarter.
The US trade imbalance narrows as private sector employment increases.
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