Private sector hiring rebounds in August with 195,000 added

Private employers added 195,000 jobs in August, according to the latest ADP National Employment Report, surging past analyst expectations of 149,000 even as recession fears continue to mount.

Most hiring took place in the service-providing sector, with 184,000 new jobs created. Manufacturing hiring remained fairly steady, with 8,000 jobs added.

It was the best month for private-sector hiring since April, which saw 255,000 new jobs added.

The better-than-expected number could help to temper fears that the record-long economic expansion is coming to an end.

“Businesses are holding firm on their payrolls despite the slowing economy," Moody's Analytics chief economist Mark Zandi said in a statement. "Hiring has moderated, but layoffs remain low. As long as this continues recession will remain at bay.”

During a conference call with reporters, Zandi said he estimated the economy created 100,000 jobs per month on average. If the trade war does not continue to weigh on the health of certain sectors, like agriculture and transportation, the economy could avoid a recession.

"If nothing else goes off the rail, we should be in pretty good shape," he said. "The expansion should continue on for the foreseeable future. We should be fine."

President Trump touted the number in a tweet, following the release of the data: "Really Good Jobs Numbers!"

The report precedes the release of the more closely watched Labor Department’s jobs report on Friday, during which the U.S. economy is expected to have added 158,000 new jobs. Analysts anticipate unemployment will remain at 3.7 percent, near a decades-low. In July, the U.S. added a healthy 164,000 new positions.