A new report issued from ADP and Moody's Analytics offered more great news on the economy: in September private payrolls rose by 230,000, well ahead of the expectations raised by economists, which had posited an expansion of 185,000 in September. September also surpassed August’s gain of 168,000. The September gains meant job growth last month was the highest in seven months.
230,000 more positions were added in private positions, the most since last February, when 241,000 jobs were added. Businesses employing between 51 and 499 people added 99,000 new employees.
Mark Zandi, chief economist at Moody's Analytics, told CNBC, "This labor market is rip-roaring hot. The risk that this economy overheats is very high, and this is one more piece of evidence of that."
Zandi estimated that the unemployment rate would plunge to roughly 3% in the next twelve months; that rate currently sits at 3.9%. The economy is so strong that even the impact of Hurricane Florence could not dim its advance, although Zandi said the number of jobs gained could ultimately be reduced by 25,000 because of Florence.
MarketWatch reported, “Stock index futures jumped after the data suggesting the Dow Jones Industrial Average could hit records in trading Wednesday.”