The US labor market showed signs of recovery in October, according to a new ADP report that averaged 14,250 jobs added per week in the four weeks ending Oct. 11.
ADP Chief Economist Nela Richardson said hiring began to pick up from September's lows, albeit at a slower pace, signaling the US economy is emerging from a brief job loss slump.
ADP, which has been publishing monthly data since 2010, will now release a weekly report to provide a more accurate view of the direction of the labor market. The latest data showed private employers shed 32,000 jobs in September.
With the US government shutdown preventing the release of official jobs data, the ADP report is a key reference for investors ahead of Wednesday's Fed rate decision, where the market is expecting a 0.25% rate cut.
Former Kansas City Fed President Esther George said Fed officials now need to rely on unofficial sources like ADP to gauge the true state of the labor market, adding that the new findings align with the Fed's rationale for continuing to ease policy.
