US companies added 749,000 jobs in August, beating economist forecasts, ADP says

Rick Bowmer/ AP

• The US added 749,000 private payrolls in August, according to ADP's monthly employment report.
• The total beat the median economist estimate of 649,000 payrolls, according to estimates compiled by Bloomberg.
• The report precedes the US government's nonfarm payrolls report slated for Friday release.
• Visit Business Insider's homepage for more stories.

Private-sector hiring accelerated through September as the US labor market's recovery charged onward.

US companies added 749,000 payrolls last month, according to the ADP monthly employment report published Wednesday. That beat the median economist estimate of 649,000 payrolls, according to forecasts compiled by Bloomberg. The sum also exceeded the revised 481,000 reading for August.

The monthly ADP report is viewed as a prelude to the government's monthly nonfarm payrolls report released the following Friday. Economists expect the government's release to show the unemployment rate falling to 8.2% in September, down from 8.4% the prior month. They also expect 850,000 US payroll additions for the month.

Read more: UBS says the chances of a Democratic sweep have risen to 50% as Trump and Biden square off in their first debate. These 9 assets will help investors profit if a blue wave comes crashing in.

To be sure, ADP's data has lagged the government's report in recent months and signaled gloomier trends than nonfarm payrolls data has shown.

ADP's print also arrives after new US jobless claims unexpectedly ticked higher for the week ended September 19. Filings for unemployment benefits totaled 870,000, missing economists' estimate of 840,000 and climbing from the week prior. The jump keeps claims at historically high levels and indicates lingering pain in the US labor market.

Recent announcements suggest a full recovery is still far out. Disney said on Wednesday it plans to fire 28,000 workers in its weakening theme park business. Royal Dutch Shell will lay off up to 9,000 workers as stagnant crude oil demand forces firms to cut costs.

New claims for the week ended Saturday are scheduled for release Thursday morning.

This story is breaking, check back soon for updates.

Read more: JPMORGAN: The best defenses against stock-market crashes are delivering their weakest results in a decade. Here are 3 ways to adjust your portfolio for this predicament.

Read the original article on Business Insider

from Business Insider https://ift.tt/34g0Ake