The most recent monthly ADP National Employment Report, which was released on Wednesday, indicated that private sector employment increased by 89,000 jobs, which is the slowest rate of job growth in more than two years as the economy appears to be slowing down.
The report, which is released two days ahead of the Labor Department's official jobs report, determines how many private non-farm jobs have been created or eliminated over the course of a single calendar month.
“September showed the slowest pace of growth since January 2021, when private employers shed jobs,” the report noted. “Large establishments drove the slowdown, losing 83,000 jobs and wiping out gains they made in August.”
The analysis, which was created by the ADP Research Institute and Stanford Digital Economy Lab, also revealed that annual compensation had increased by 5.9% since the same time last year. That was the 12th month in a row that growth slowed down.
“We are seeing a steepening decline in jobs this month,” as per Nela Richardson, chief economist for ADP. “Additionally, we are seeing a steady decline in wages in the past 12 months.”
With 95,000 new hires in September, small businesses (those with 49 or less employees) more than made up for the 83,000 jobs that large enterprises (those with more than 500 employees) lost.
The largest employment losses in September were in professional and business services (32,000), trade, transportation, and utilities (13,000), and manufacturing (12,000.
Regionally, the West added 66,000 jobs in September while the South lost 16,000, with the majority of those gains occurring in the Pacific region.
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