Private payrolls climb by 208,000 in September, higher than estimates: ADP

Private companies added more jobs than expected in September, according to a report.

Businesses added 208,000 for the month, better than the 200,000 estimate and ahead of the upwardlyrevised 185,000 in August.

Even as manufacturing, natural resources and mining lost jobs, there were gains.

The sector saw a jobs gain of 147,000 as a result of the jump in trade, transportation and utilities.

Education and health services increased by 38,000, while leisure and hospitality increased by 31,000. Information declined and financial activities lost 16,000 positions in the services sector.

Small businesses contributed 58,000 and large firms added 60,000.

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The tight job market saw another month of sizeable pay hikes, with annual pay rising 7.8% from a year ago, according to a report by the private payroll company. The biggest monthly drop in three years in the median change in annual pay for those changing jobs was seen in August.

Two days before the Bureau of Labor Statistics issues the non-farm payrolls report, there is a report from Automatic Data Processing.

There will be a growth of 275,000 jobs on Friday. The August total, which was revised up sharply from the original 132,000, was well shy of the BLS count of 315,000 added jobs.

The jobs numbers are watched closely by the Federal Reserve.