The private sector lost 32,000 jobs in September, according to ADP – a sharp miss compared to expectations of a 50,000-jobgain. August’s numbers were also revised down significantly, from a gain of 54,000 to a loss of 3,000.
Job losses were broad-based: small businesses cut 40,000 jobs and medium-sized firms lost 20,000. Seven out of ten sectors reported declines. However, education and health services stood out, adding 33,000 jobs. Large companies (500+ employees)also added 33,000 jobs.
Wage growth remained stronger for job switchers, who saw a 6.6% annual increase – though that’s down from 7.1% in August. Workers who stayed in their jobs saw a 4.5% gain.
What’s the bottom line?
Job growth is slowing. The private sector has now posted losses in three of the past four months. As ADP Chief Economist Dr. Nela Richardson put it: “Despite the strong economic growth we saw in the second quarter, this month’s release further validates what we’ve been seeing in the labor market, that U.S. employers have been cautious with hiring.”
