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ADP Report: Private Sector Added 200,000 Jobs in September


Prior to this morning’s release of the ADP National Employment Report, economists predicted the addition of 194,000 jobs to private payrolls during the previous month. The actual number, 200,000 jobs, came in above expectations and August’s disappointing 190,000 jobs added.

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(Photo Credit: photologue_np/Flickr)

“The U.S. job machine continues to produce jobs at a strong and consistent pace,” said Mark Zandi, chief economist of Moody’s Analytics, which prepares the report with ADP. “Despite job losses in the energy and manufacturing industries, the economy is creating close to 200,000 jobs per month. At this pace full employment is fast approaching.”

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Service-producing jobs increased by 188,000 last month. Professional and business activities increased by 29,000 jobs, just slightly shy of August’s 30,000; trade, transportation, and utilities added 39,000 jobs, up from August’s 25,000; financial activities added 15,000 jobs in September, after adding 14,000 in August.

Goods-producing employment was a mixed bag: while construction increased by 35,000 jobs, nearly twice August’s addition of 18,000, manufacturing declined by 15,000 jobs, the lowest since the end of 2010.

Big businesses led job gains last month, with companies with 500-plus employees adding 106,000 jobs. Medium-sized businesses with 50-499 employees added 56,000 jobs, and small businesses with fewer than 50 employees added 37,000 jobs.

“Businesses with more than 1,000 employees contributed over half of the job gains in September, despite weakness in energy and manufacturing,” said Ahu Yildirmaz, VP and head of the ADP Research Institute. “The largest companies appear to be starting to overcome the impacts of weak global demand and the high dollar, while the smallest companies may have pulled back as concerns about the resiliency of the U.S. economy grew and consumer confidence softened.”

Friday’s report from the labor department is expected to show the addition of 203,000 to non-farm payrolls, according to economists polled by Reuters, and an employment rate that is unchanged at 5.1 percent, the lowest in more than seven years. The PayScale Index, which measures the change in earnings for employed U.S. workers, forecasts a 0.4 percent growth in wages for Q3.

        ADP National Employment Report: Private Sector Employment Increased by 200,000 Jobs in September

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Jen Hubley Luckwaldt
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