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US private sector jobs miss expectations

US private employers added a fewer than expected 166,000 jobs last month
US private employers added a fewer than expected 166,000 jobs last month

US private employers added a fewer than expected 166,000 jobs in September, according to data from a payrolls processor, underscoring steady but still sluggish growth in the labour market.

Economists had forecast the ADP National Employment Report would show a gain of 180,000 jobs.

August's private payrolls gains were revised to 159,000 from the previously reported 176,000.

The US Federal Reserve has been weighing pulling back on its $85 billion a month bond buying programme but has so far kept up its purchase pace.

It is worried that the economy, including the labour market, has not yet gathered enough momentum to stand on its own

Complicating things further, this week the government shut down in the wake of demands by Congressional Republicans to undermine President Barack Obama's signature healthcare law in exchange for agreeing to keep the government running.

This means the ADP report has taken on added significance this week as the government shutdown looks likely to limit other labor market data for September. For example, Friday's key non-farm payrolls report from the Labor Department now seems likely not to be released as planned.

Notable in today's report were small employers, who added 74,000 jobs, more than either medium or large businesses.