US Private Companies Added 177,000 jobs in August, Beats Wall Street Estimates

CNBC reported that private companies in the US created 177,000 jobs for the month of August beating Wall Street expectations of 175,000.

The rise in job creation was greeted positively because it comes at a time of decline in manufacturing and construction according to a report from ADP and Moody's Analytics.

Majority of the new jobs came from the services industry which created 183,000 job positions. Manufacturing industries lost 6,000 in August, slightly higher than the job loss in July which was 5,000 jobs.

"Broadly speaking, the labor market feels really good. All of the internals of the labor market are solid."" said Mark Zandi, chief economist at Moody's Analytics.

CNBC said the biggest gains in job creation came from professional and business services, which added 53,000 positions. Trade, transportation and utilities contributed 26,000, while financial activities grew by 15,000. Franchises added 19,200.

Furthermore, companies with more than 500 employees added a total of 70,000 jobs, while those with fewer than 50 employees added 63,000 job. Medium-sized firms contributed 44,000.

The ADP jobs report is monitored closely by stock investors because the report is considered as  a preview of the nonfarm payrolls report by the Labor Department which will be released this Friday.

Wall Street speculates that payroll growth will be at 185,000, with the unemployment rate likely to drop to 4.8 percent.

Janet Yellen and the rest of the Federal Reserve board will also be hawkishly watching Friday's jobs reports as it contemplates whether to hike interest rates this September which Bill Gross of the Janus Bond Fund said is the right thing to do and end cheap money from intoxicating markets and inflating asset prices.