Job growth in the private sector rose in September in a sign of strength in the U.S. labor market.
What Happened: Private sector employment increased by 208,000 jobs in September, according to a new ADP National Employment Report. The number was up from a revised 185,000 in August and also came in above average economist estimates of 200,000.
Annual pay was up 7.8% year-over-year.
Goods-producing industries reported a loss of 29,000 positions, but that was more than offset by a 147,000 increase in trade, transportation and utilities.
Information and financial services fell by 19,000 and 16,000, respectively, while professional and business services increased by 57,000, education and health services jumped 38,000 and leisure and hospitality services added 31,000.
Why It Matters: The SPDR S&P 500 SPY ticked slightly lower on the release. The ADP report comes just days ahead of the nonfarm payrolls report, and the Federal Reserve will be paying close attention as it attempts to tame runaway inflation.
Last month, the Fed raised its benchmark rate by 0.75% for the third straight time and indicated that it will continue to hike well above the current level.
The 0.75% rate hike brought the target fed funds rate up to a new range between 3% and 3.25%, the highest levels seen since before the 2008 financial crisis.
In a press conference following the decision on rates, Fed Chair Jerome Powell reaffirmed the central bank’s commitment to bringing inflation back down to its 2% goal.
“Restoring price stability is essential to set the stage for achieving maximum employment and stable prices over the longer run. We will keep at it until we’re confident the job is done,” Powell said.
SPY Price Action: The SPY was down 0.99% at $374.18 Wednesday morning, according to Benzinga Pro.
Photo: Flazingo Photos from Flickr.
Image and article originally from www.benzinga.com. Read the original article here.