US employers have created more new jobs than expected in the past month, and more were added in September than originally reported, in signs that the labour market is starting to bounce back.
The closely-watched ADP National Employment Report has shown that the private sector added 110,000 jobs in October, topping economists' expectations for a gain of 101,000 jobs.
ADP also increased September's job additions, to a gain of 116,000 from the previously reported 91,000, taking the total overshoot on expectations to 31,000. The report is jointly developed with Macroeconomic Advisers.
US markets have responded well, with the S&P 500 opening 1.4 per cent higher and the Dow gaining 1.2 per cent.
A separate report showed planned layoffs dropped sharply last month to the lowest level since June, and hiring levels surged.
Employers announced 42,759 planned job cuts last month, tumbling 63.1 per cent from 115,730 the month before, according to the report from consultants Challenger, Gray & Christmas.
“The sluggish recovery in employment is continuing, with private payroll growth still not even fast enough to keep unemployment from rising further in the medium-term, never mind bringing it down,” said Ian Shepherdson, chief UK and US economist at High Frequency Economics.
“Still, in the wake of the steep decline in many indicators of business confidence in recent months we are relieved the ADP numbers are not worse.”