U.S. Private Sector Job Gains Increased in September, Beating Expectations -- ADP
October 06 2021 - 9:08AM
Dow Jones News
By Maria Martinez
Job creation in the U.S. private sector rose in September
compared with the previous month, as the labor market recovery
continues but at a slower pace than in previous months.
The U.S. nonfarm private employment increased by 568,000 in
September, data from ADP National Employment Report showed
Wednesday, beating the 425,000 rise expected by economists polled
by The Wall Street Journal.
In August, the U.S. private sector added 340,000 jobs, less than
the 374,000 jobs of the initial estimate.
"The labor market recovery continues to make progress despite a
marked slowdown from the 748,000 job pace in the second quarter,"
said Nela Richardson, chief economist at ADP.
Medium-sized businesses, between 50 and 499 employees, added
115,000 jobs in September. Large businesses, those of at least 500
workers, created 390,000 jobs; and small businesses, with a maximum
of 49 employees, registered 63,000 payroll gains.
By sector, 466,000 jobs were created among services providers.
Among those, 226,000 were added in the leisure and hospitality
sector.
"Leisure and hospitality remains one of the biggest
beneficiaries to the recovery, yet hiring is still heavily impacted
by the trajectory of the pandemic, especially for small firms," Ms.
Richardson said.
Jobs in the goods-producing sector were up by 102,000, with
46,000 in construction, 7,000 in natural resources and mining, and
49,000 in manufacturing, ADP said.
"Current bottlenecks in hiring should fade as the health
conditions tied to the Covid-19 variant continue to improve,
setting the stage for solid job gains in the coming months," Ms.
Richardson said.
The report, carried out by the ADP Research Institute along with
Moody's Analytics, is based on data through the 12th of the
month.
The U.S. Department of Labor is expected to release its
employment report for September, which covers the same period as
the ADP National Employment Report, on Friday. Economists polled by
The Wall Street Journal are expecting it to show nonfarm payrolls
up by 500,000 for the month and the unemployment rate down to 5.1%
from 5.2% the previous month. The ADP series can diverge
considerably from the Labor Department's data on a monthly
basis.
Write to Maria Martinez at maria.martinez@wsj.com
(END) Dow Jones Newswires
October 06, 2021 08:53 ET (12:53 GMT)
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