Private sector employment increased by 143,000 jobs in September, surpassing expectations and showing a notable jump from the 103,000 jobs added in August, according to the latest ADP National Employment Report.
- Economists had projected a more modest gain of 120,000 jobs for the month, but hiring momentum exceeded forecasts.
Breaking It Down: Leading the job gains in September was the leisure and hospitality sector, which added 34,000 new positions. Other significant contributors included construction, which saw a 26,000 job increase, and education and health services, which added 24,000 jobs.
- The only sector to experience job losses was information, shedding 10,000 jobs for the month.
Wage growth, however, showed signs of slowing. For employees who stayed in their roles, pay increases were up 4.7% compared to September 2023, a slight deceleration. Job-changers saw a more pronounced slowdown, with year-over-year wage growth dropping to 6.6% in September, down from 7.3% in August.
What they’re Saying: “Stronger hiring didn’t require stronger pay growth last month,” said Nela Richardson, chief economist at ADP. “Typically, workers who change jobs see faster pay growth. But their premium over job-stayers shrank to 1.9 percent, matching a low we last saw in January.”
Bottom Line: As the labor market continues to show resilience, the report underscores a moderation in wage pressures, which may have implications for inflation and interest rate policies in the months ahead.
