U.S. businesses added 195,000 jobs last month, according to the ADP National Employment report released Thursday, exceeding expectations amid concerns of a possible recession in 2020.
Despite slowing economic growth and the escalating cost of global trade tensions, private sector payrolls gained well more than the 145,000 workers that economists had projected for August.
“It suggests that if nothing goes off the rails, we should be in pretty good shape and the expansion should go on for the foreseeable future,” said Moody’s Analytics chief economist Mark Zandi, who co-leads the monthly employment report.
“If the trade war is resolved, meaning the war simply is not escalated, sentiment would likely stabilize and the expansion would continue on.”
The ADP figures are a welcome sign ahead of a highly anticipated monthly jobs report from the Labor Department that’s scheduled to be released Friday. The federal report includes both private sector and government hiring, providing a broader picture of labor market conditions.