Market Overview

ADP Reports Robust September Private Payroll Data; Will Friday's Non-Farm Payroll Follow Suit?

ADP Reports Robust September Private Payroll Data; Will Friday's Non-Farm Payroll Follow Suit?

Economic data released by Automatic Data Processing (NASDAQ: ADP) Wednesday further reinforces the momentum seen in the job market. 

Strong September

ADP's monthly private payrolls data shows that the private sector added 230,000 jobs in September. The consensus had called for a gain of 179,000 jobs.

In August, private payrolls expanded by an upwardly revised 168,000.

Sector-wise, the goods-producing sector added 46,000 jobs, with gains in construction and manufacturing of 34,000 and 7,000, respectively. At the same time, the service-providing sector added 184,000 jobs.

"The job market continues to power forward. Employment gains are broad-based across industries and company sizes. At the current pace of job creation, unemployment will fall into the low 3-percents by this time next year," Mark Zandi, chief economist at Moody's Analytics, said in a statement. 

Friday's Non-Farm Payrolls: A Sneak Peek

The Department of Labor is scheduled to release its non-farm payrolls report for September at 8:30 a.m. Friday. Economists, on average, forecast job gains of 180,000 following the addition of 201,000 jobs in August.

About 175,000 of job gains are expected in the private sector.

The jobless rate is expected to dip one-tenth of a percentage point to 3.8 percent.

The Correlation Between ADP, NFP Data

The private payrolls data of the ADP and NFP reports are not perfectly in sync with each other, as studies point to the fact that two data sets fall within 10 percent of each other less than 25 percent of the time. 

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