Private survey: U.S. added 201K jobs in August

Payroll provider ADP has released its monthly survey of U.S. job creation, as usual, one day before the federal government is slated to report August job numbers. In its report, ADP says U.S businesses stepped up hiring in August and added 201,000 jobs—the most reported by ADP since March. ADP also says July job growth was stronger than first thought: Employers created 173,000 jobs—10,000 more jobs than the group reported last month. The report only covers hiring in the private sector and excludes government job growth. The Labor Department will offer a more complete picture of August hiring Friday morning. The two surveys reported roughly the same private-sector job creation in July. But they have diverged sharply in previous months. In the federal government’s July jobs report, the national unemployment rate ticked up to 8.3%. Typically, it takes monthly job gains of at least 200,000 to see any lowering of the unemployment rate. On a related note, the Labor Department reports this morning that weekly applications for unemployment benefits fell by 12,000 last week to a seasonally adjusted 365,000. Nonetheless, the four-week average—a less volatile measure—ticked up to 371,250. Unemployment benefit applications are a measure of the pace of layoffs. When they consistently fall below 375,000, it suggests that hiring is strong enough to lower the unemployment rate.