US private sector job gains at 7-month high
The number of private-sector jobs increased by 230,000 from August to September, according to the latest ADP National Employment Report, the highest reading since February.
In September, midsize businesses and the service sector dominated the gains, with 99,000 of the created positions in medium-sized businesses. Most of the jobs were in the service sector, which added 184,000 positions.
"At the current pace of job creation, unemployment will fall into the low 3%'s by this time next year," according the Moody’s Analytics chief economist Mark Zandi.
Analysts polled by Thomson Reuters expected a gain of 185,000 jobs in September.
In August, the U.S. added 163,000 non-farm payrolls. Monthly job gains have averaged 207,000 a month over the first 8 months of the year.
On Friday the government will release the latest employment stats for September. U.S. employers likely added 185,000 new jobs and the unemployment rate is expected to fall to 3.8 percent, according to Thomson Reuters.
Wage growth is also improving nearing a 17-month high. Wages grew 2.6 percent year-over-year from 2017 to $52,664, making it the fastest wage growth seen since April 2017, according to Glassdoor.