ADP Added 235,000 After Storm Effects Fade

U.S. companies added the most workers in seven months in October as hiring rebounded from an 11-month low set in September stemming from Hurricanes Harvey and Irma, a report by a payrolls processor showed on Wednesday.

The ADP National Employment Report said private employers hired 235,000 workers last month, exceeding a median forecast of 200,000 among economists polled by Reuters.

Domestic private payrolls in September were revised down to an increase of 110,000 from the previous 135,000.

The report is jointly developed with Moody’s Analytics.

“This labor market is tight and is destined to be tighter,” Mark Zandi, Moody’s Analytics chief economist said on a conference call with reporters.

The ADP figures come ahead of the U.S. Labor Department’s more comprehensive non-farm payrolls report on Friday, which includes both public and private-sector employment.

Economists polled by Reuters are looking for U.S. private payroll employment to have grown by 303,000 jobs in October, versus a drop of 40,000 the month before. Total non-farm employment is expected to have increased by 312,000.

The unemployment rate is forecast to stay steady at 4.2 percent.

Zandi said the government’s jobs readings in September and October would show larger swings than those from ADP because it uses a different method to count workers affected by the storms.

via Reuters

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