ADP Says U.S. Private Sector Employment Rose 135,000 in September
U.S. private sector job creation slowed as expected in September, according to the latest release from ADP and Moody’s Analytics.
The private payrolls processor ADP said private-sector job creation rose by 135,000 in September, compared with expectations for 131,000. That followed a downwardly revised gain of 228,000 in August.
Gains last month were recorded in the goods-producing and services-producing industries. Among goods producers, construction added 29,000 jobs. Manufacturing employment rose by 18,000.
On the services side, education and health services jobs increased by 29,000. Leisure and hospitality employment added 20,000.
Despite the increase, September marked the weakest month of hiring since October of last year, according to ADP data. The sectors with the biggest losses were trade, transportation and utilities (-18,000) and information (-11,000), data showed.
“Hurricanes Harvey and Irma hurt the job market in September. Looking through the storms the job market remains sturdy and strong,” Mark Zandi, chief economist of Moody’s Analytics, said in a statement.
Hurricane Harvey triggered the biggest weekly spike in initial jobless claims since 2012. The number of Americans filing for unemployment benefits spiked by 62,000 to 298,000 in the week to Sept. 2, the Labor Department said last month.
ADP data are considered a strong indicator of the official labor market trend.
Nonfarm Payrolls Eyed
The Labor Department will release the official nonfarm payrolls data on Friday, which is a more comprehensive snapshot of the labor market. Economists are projecting a September increase of 98,000 nonfarm jobs, following a gain of 156,000 in August.
Unemployment is expected to hold steady at 4.4%. Average hourly earnings, a proxy for wage inflation, is forecast to climb 0.3% month-on-month.