According to a recent report from ADP, private sector companies in the U.S. added 90,000 jobs in September. This number surpasses economists’ predictions, which forecasted an addition of 70,000 jobs, and marks an increase from the previously revised 36,000 jobs created in August. ADP’s chief economist, Nela Richardson, called the report “strong,” noting a rebound in job creation after a period of three months of slowdown, while also highlighting that wage growth has remained robust.
Where are the jobs being created?
The education and health services sector led job growth, creating 55,000 positions in September. Meanwhile, the leisure and hospitality industry saw an increase of 22,000 jobs, and manufacturing added 17,000 positions. Construction contributed 15,000 new jobs as well, although hiring in the trade, transportation, and utilities sector remained stagnant. Other services and information sectors added 6,000 and 3,000 jobs, respectively.
On the flip side, financial activities saw a decline of 16,000 jobs, while professional and business services lost 11,000 positions. Additionally, natural resources and mining faced a small loss of 1,000 jobs.
Job gains were distributed among various business sizes. Large firms, those with over 500 employees, contributed 34,000 jobs, medium-sized businesses with 50 to 499 employees added 54,000, and smaller establishments with fewer than 50 employees accounted for 23,000 new jobs.
Interestingly, base pay has seen an annual increase of 3.2%, with gross pay rising by 4.7%. It’s worth noting that the ADP report is typically released prior to the Labor Department’s nonfarm payrolls report, which is set to come out on Friday and may show an increase of 84,000 positions. This figure is notably less than the unexpected drop of 23,000 jobs reported in July, and the unemployment rate is anticipated to remain stable at 4.1%.
