“The job market continues to power forward. Job creation is strong across nearly all industries, company sizes,” Mark Zandi, chief economist at Moody’s Analytics, said in a statement. “Mounting labor shortages are set to get much worse.”
The numbers come as the national job picture appears to be at or near what would normally be considered full employment. The unemployment rate has tumbled to a 16-year low of 4.3 percent as the economy has added 440,000 jobs over the past two months, according to the government’s official nonfarm payrolls account.
The Labor Department will release its August tally on Friday, with a gain of 180,000 expected. Economists sometimes adjust their projections based on the ADP numbers, though the gap between the two readings can be substantial. August’s numbers are often volatile, and Zandi cautioned that the initial reading may be low “due to measurement problems.”
“The economy is powering ahead and we’re getting 200K,” Zandi told CNBC. “We will see this slow, it’s just a matter of when.”
As for the ADP/Moody’s count, there also were several other interesting developments.
Businesses with more than 500 employees led the way with 115,000 new positions. Companies with fewer than 50 employees added 48,000, while medium-sized firms grew by 74,000. Most sectors saw at least modest gains, though mining lost 1,000 and information services declined by 3,000. Wall Street saw its ranks grow by 11,000.
Ahu Yildirmaz, the co-head of the ADP Research Institute, noted that the growth in trade jobs was the best of the year and said it “could be an industry to watch as consumer spending and wage growth improves.”