'The US economy will soon be at full employment'
US private payrolls increased by 177,000 in August, according to the ADP Research Institute.
Economists had estimated that private payrolls grew by 175,000, according to Bloomberg. The increase for July was revised higher, to 194,000 from 179,000.
Employment in the goods-producing sector fell again, accelerating by 1,000 to a loss of 6,000 jobs. Manufacturing jobs were flat.
But hiring among service producers offset these declines. Service-producing employment rose by 183,000 — fewer than the 199,000 jobs created in July.
“The American job machine continues to hum along,” said Mark Zandi, chief economist of Moody’s Analytics, in a release. “The US economy will soon be at full employment.”
As usual, this release precedes the government’s nonfarm payrolls numbers on Friday.
Both take on added importance because of the Federal Reserve, which has become more vocal about its plans to raise interest rates again soon.
Strong employment in August would complete a “hat trick of stellar jobs reports,” the third consecutive strong month, wrote Craig Erlam, senior market analyst at Oanda.
“Two excellent jobs reports in June and July have put a rate hike this year well and truly back on the table but it would seem that investors want at least one more in order to be convinced,” he wrote in a note on Wednesday. “While December may now be marginally priced in for a hike, a weak jobs report could quickly change that.”
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