ADP report was “good news for the Fed”: Economist

ADP's private payroll data beat economists' expectations for September. The publication shows that 143,000 new jobs were created in the private sector last month, above the estimated 125,000. ADP Chief Economist Nela Richardson Joins Wealth! break down the report.

Richardson notes that despite higher hiring, the ADP data did not show an increase in wage growth, but did show “a moderation in salaries for job stayers and a sharp decline in salaries for job changers.” She explains that this dynamic suggests that hiring growth will not fuel inflation, which is “good news for the Fed,” but also suggests that the labor market is still robust.

“We're as close to a Goldilocks scenario as I think we're going to get in this job market,” she tells Yahoo Finance.

Watch the video above to hear what Richardson says about the connection between hiring trends and wage growth and their impact on the health of the labor market.

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This post was written by Angel Smith