Employment in the U.S. private sector increased by more than expected in the month of September, according to a report released by payroll processor ADP on Wednesday.
ADP said private sector employment jumped by 568,000 jobs in September after rising by a downwardly revised 340,000 jobs in August.
Economists had expected private sector employment to climb by 428,000 jobs compared to the addition of 374,000 jobs originally reported for the previous month.
"The labor market recovery continues to make progress despite a marked slowdown from the 748,000 job pace in the second quarter," said ADP chief economist Nela Richardson.
She added, "Current bottlenecks in hiring should fade as the health conditions tied to the COVID-19 variant continue to improve, setting the stage for solid job gains in the coming months."
The stronger than expected private sector job growth was partly due to a notable increase in employment in the leisure and hospitality industry, which added 226,000 jobs.
Employment in the goods-producing sector also climbed by 102,000 jobs amid increases in both construction and manufacturing jobs.
The report also showed employment at large businesses surged up by 390,000 jobs, while midsized businesses added 115,000 jobs and employment at small businesses edged up by 63,000 jobs.
On Friday, the Labor Department is scheduled to release its more closely watched monthly employment report, which includes both public and private sector jobs.
Economists currently expect employment to increase by 488,000 jobs in September after rising by 235,000 jobs in August. The unemployment rate is expected to dip to 5.1 percent from 5.2 percent.