Private employment records recorded higher readings in October as they were driven by hiring in the hospitality sector as reported in an ADP report on Wednesday.
The company added 571,000 for October. This figure surpasses the Dow Jones' estimate of 395,000 jobs. This month's reading also surpassed the September reading to record the best month since last June.
The leisure and hospitality sector, which includes restaurants, hotels and the like, recorded an increase of 185,000 jobs. This sector is seen as a proxy for measuring economic recovery.
According to Mark Zandi, chief economist at Moody's Analytics, "the job market will continue to recover as the delta variant pandemic eases". Zandi added that the increase in employment is accelerating across all sectors of the economy, especially among large companies. As long as the spread of Covid-19 is under control, the employment sector will continue to recover '.
The ADP report was issued 2 days earlier before the NFP report was issued by the Department of Labor. Economists predict that the economy will record as many as 450,000 jobs in NFP readings.
It should be noted that although the ADP can serve as a pioneer to government counts, the two can record a huge gap. In September, ADP's total private wage earnings initially recorded a reading of 568,000 before being revised lower at 523,000. On the other hand, the NFP reading in September was only 194,000.
Market players are now focusing on the NFP report which will be released this Friday.
