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The numbers: U.S. private sector employers added 208,000 jobs in September, up from a revised 185,000 in the prior month, according to the ADP job report released Wednesday.
Economists polled by the Wall Street Journal had expected a gain of 200,000 jobs, up from the initial August estimate of 132,000.
Key details: Annual pay was up 7.8% in September, up from a revised 7.7% in the prior month, ADP said.
Wages for job changes lost momentum in September, with their annual pay down to 15.7% from 16.2% in August.
Jobs for medium-sized businesses had the largest gain – rising 90,000 jobs. Large firms added 60,000 jobs and small businesses added 58,000.
Big picture: Last month, ADP introduced new methodology to its report and is no longer trying to forecast the government’s employment data, which will be released on Friday. But economists said the data sets the tone for the government’s report on Friday. Economists expect the Labor Department to report that payroll growth, including the public sector, rose by 275,000 in September, down from 315,000 in the prior month.
What ADP said: “We are continuing to see steady job gains,” said Nela Richardson, chief economist at ADP.
Market reaction: Stocks
DJIA,
SPX,
were set to open lower Wednesday.
