Private Sector Adds 143K Jobs in September
U.S. private nonfarm payrolls climbed by 143,000 in September from 103,000 in August, which was revised from 99,000, according to the ADP National Employment report. The latest measure of the U.S. labor market easily beat the forecast for an increase of 121,500.
Annual pay increased 4.7% from a year ago, down slightly from 4.8% the prior month. Those who changed jobs saw a 6.6% annual increase, a sharp decline compared to a 7.3% annual increase in August.
“Stronger hiring didn’t require stronger pay growth last month,” said Nela Richardson, chief economist, ADP. “Typically, workers who change jobs see faster pay growth. But their premium over job-stayers shrank to 1.9%, matching a low we last saw in January.”
Job growth rebounded after a five-month slowdown, driven by gains in most sectors except information.
Medium (+64,000) and large (+86,000) establishments drove the job gains, while small employers (-8,000) cut into the number.
Service-providing employers added 101,000 to their headcounts, with leisure/hospitality adding 34,000 and education and health services boosting the overall number by 24,000. Information shed 10,000 jobs during September.
The goods-producing sector added 42,000 jobs, with construction accounting for more than half at 26,000.
Federal Reserve policymakers are keenly monitoring the job market as they consider the next steps in monetary policy and interest rates. In a speech Monday, Fed Chair Jerome Powell described the labor market as “solid” while acknowledging that it has “clearly cooled” over the last year.
