Washington, DC, United States (4E) – Private firms added more positions at a modest rate in August, according to a gauge of business hiring released Thursday. The figure is in line with economists’ forecasts and should have little impact on expectations for Friday’s non-farm payroll report.
The national employment report by payroll processor Automatic Data Processing Inc. (ADP) and forecasting firm Moody’s Analytics shows private-sector jobs in the U.S. grew by 176,000 in August.
In a survey by MarketWatch, analysts predicted a gain of 185,000 in August, compared with an initial estimate of 200,000 increase in July. The report also revised July’s figure to a gain of 198,000.
Thursday’s ADP estimate comes before the release of Friday’s Bureau of Labor Statistics (BLS) employment situation, which counts both private and government payrolls.
The median forecast by economists called for a 175,000 new positions in nonfarm payrolls in August, compared with 162,000 jobs added in July. The jobless rate in August is forecast to stay at 7.4 percent.
While the employment report is closely tracked by both investors and economists, the report in August is more crucial than usual. The data will be the last payrolls figure before the meeting of the U.S. Federal Reserve set on Sept. 17- 18. Analysts predict policymakers to reduce its bond-buying program.