Private Sector Added 91,000 Jobs in September
Private sector job growth continued at a steady pace in September, led by the service-producing sector and small businesses, according to an Automatic Data Processing (NASDAQ:ADP) report released Wednesday.
According to this morning’s report, payrolls increased by 91,000 in September, compared to 89,000 in August after a slight downward revision to the initial 91,000 reported for August. September’s figure beat economists’ expectations by roughly 16,000.
“The recent trend in private employment…remains moderate, and probably is below a pace consistent with a stable unemployment rate,” said Joel Prakken, chairman of Macroeconomic Advisers. “Moderate growth in employment is consistent with the recent deceleration of GDP.”
Small-business employment rose 60,000 in September, while medium businesses added 36,000 jobs and large businesses eliminated 5,000. The service-producing sector added 90,000 net jobs, while goods-producing employment only rose by 1,000.
The ADP’s monthly report on private-sector payrolls provides some guidance on the U.S. Labor Department’s job estimate, which will be released on Friday, and includes information on both private- and public-sector payrolls. State and local governments have been consistently cutting jobs since the financial crisis.
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Friday’s Labor Department employment report is expected to show moderate growth, just enough to keep the unemployment rate steady at 9.1%, which would nonetheless be an improvement upon employment in August, when the economy added zero net jobs.