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Private Sector Adds 90,000 Jobs in September, Exceeding Expectations
Confirmed
In Short: The flash S&P Global US Composite Purchasing Managers Index (PMI) rose to 58.4 in September from 56 in August, signaling a marked acceleration in private-sector activity.
Payroll processing firm ADP reported Wednesday that private companies added 90,000 jobs in September, exceeding economists' estimates of a gain of 70,000 jobs.
Education and health services led hiring, adding 55,000 positions, while leisure and hospitality added 22,000 and manufacturing added 17,000 positions.
Construction added 15,000 jobs, while other services added 6,000 and information added 3,000.
Mining was the only sector to lose jobs, shedding 1,000 positions.
Large businesses with 500 or more employees gained 34,000 jobs in August, while mid-sized companies with between 250 and 499 employees added 36,000 jobs.
Small businesses with between 50 and 249 employees and micro businesses with 1 to 19 employees added 18,000 jobs.
Financial activities lost 16,000 jobs, and professional and business services lost 11,000 jobs.
The unemployment rate remained unchanged at 4.1%, with labor force participation edging up to 61.6%.
ADP Chief Economist Nela Richardson described the report as 'strong,' noting that job creation rebounded after a three-month slowdown and pay growth remained solid.
What's confirmed
- On the negative side, financial activities lost 16,000 jobs while professional and business services lost 11,000.
What's still developing
- The figure is above economists’ estimates of a gain of 70,000 jobs and up from the prior month's revised 36,000 payrolls.
- Hiring in trade, transportation and utilities was flat in September.
- Earlier this month, the Bureau of Labor Statistics showed that nonfarm payrolls gained 162,000 jobs last month, compared to the 53,000 expected by analysts.
- BLS noted that employment increased mostly in "food services and drinking places and in local government education," while the information industry shed jobs.
- The government data is expected to show an increase of 56,000 positions, above the unexpected loss of 23,000 reported in July.
- The flash S&P Global US Composite Purchasing Managers Index (PMI) rose to 58.4 in September from 56 in August, signaling a marked acceleration in private-sector activity.