ADP: Private sector added 135K jobs in September
Private employers in the nonfarm sector added more jobs in September than economists expected, but the pace of job creation remains muted compared with last year.
The private sector added 135,000 jobs last month, according to the ADP National Employment Report. Economists polled by The Wall Street Journal were expecting 125,000 jobs.
Large business accounted for about half of the jobs, generating 67,000 new positions, according to ADP. Companies with more than 1,000 workers added the bulk of those jobs, or 52,000.
Medium-size businesses, with between 50 and 499 employees, added 39,000 jobs, while small businesses, or those with one to 49 workers, added 30,000 new positions.
Over the last three months, private employers have created, on average, 145,000 new jobs a month, according to Ahu Yildirmaz, co-head of the ADP Research Institute. That is down from the average of 214,000 during the same period last year.
“Businesses have turned more cautious in their hiring. Small businesses have become especially hesitant. If businesses pull back any further, unemployment will begin to rise,” Mark Zandi, chief economist of Moody’s Analytics, said in statement.
Service-providing companies produced most of the new positions last month, adding 127,000 jobs, according to the ADP report.
The education and health services industry added 42,000 jobs, followed by trade, transportation and utilities, which added 28,000 jobs. Companies offering professional and business services added 20,000 jobs.
The goods-producing sector added 8,000 jobs, with companies in the manufacturing industry generating 2,000 jobs.
Construction added 9,000 jobs, but the natural resources and mining category lost 3,000 jobs.
The ADP Research Institute revised down its August data and said the U.S. nonfarm private sector added 157,000 jobs for that month instead of 195,000.
On Friday, the U.S. Bureau of Labor Statistics will report the number of nonfarm jobs added in the U.S. in September.
Economists polled by the Journal are expecting 145,000 new nonfarm jobs and a 3.7% unemployment rate.
A job fair in Miami. Service-providing companies produced most of the new private-sector positions created in September.