US private employers hired more workers than expected in September, with private payrolls rising by 143,000 last month, according to data from ADP. Economists had anticipated a reading of 124,000. This data is a preview of the upcoming nonfarm payrolls report, which will be closely watched for insights into labor demand in the US and its impact on potential interest rate cuts by the Federal Reserve.
Fed Chair Jerome Powell has indicated a preference for quarter-point rate cuts in the future, emphasizing that the path of borrowing costs is not predetermined. Despite last month’s larger rate cut, Powell believes that the labor market can remain strong amidst moderate economic growth and decreasing inflation. US job openings unexpectedly rose slightly in August, indicating some resilience in labor demand during the third quarter.
