Private sector added 176,000 jobs in August

July’s jobs gain was revised down slightly to 198,000 from 200,000.

Zandi said that even with "remarkably consistent" hiring, there is an argument that job creation might have been more robust through the summer without the weight of the sequester.

Predictions were for much slower growth through the summer and into the fall: around 125,000 a month instead of the higher average that is hovering near 200,000. 

Even though hiring hasn't kicked into high gear, there is growing evidence that the market is getting close to picking up pace to significantly lower unemployment, which remains around 7 percent, Zandi said. 

Those expectations are based on Congress raising the debt ceiling and funding the government in a "reasonably graceful way" while avoiding the dark scenarios coming out of Syria.

The Labor Department will release its August report of public- and private-sector jobs growth on Friday.

Small businesses — those with between 1 to 50 employees — added 71,000 jobs, while medium-sized businesses hired 74,000.

Large firms, which have more than 500 employees, added 32,000.

Construction payrolls added 4,000 jobs, while manufacturing payrolls increased by 5,000, rebounding from a decline in July.

A separate report this week showed that factory activity picked up to not only its highest level this year but is the best showing since June 2011, after months of sluggish performance. 

In addition, claims for unemployment benefits dropped 9,000 last week to a seasonally adjusted 323,000, the lowest level since January 2008, another positive sign for the future of the job market. 

That is near the 322,000 hit in early August. 

The four-week average, which provides a better indication of how the job market is doing, fell 3,000 to 328,500, the lowest level since October 2007.

—This post was updated at 9:20 a.m.