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Hiring in the US private sector slowed sharply in September, hitting its lowest rate of growth since early 2021 according to payroll firm ADP on Wednesday. bulletin news
Employment in the private sector rose by 89,000 jobs, well below the 150,000 figure analysts expected and significantly lower than August’s number as well, ADP data showed.
The US jobs market has shown resilience despite efforts by policymakers to cool the economy and rein in stubborn inflation.
But notable easing in the labor market could bring relief to officials as they mull the need for further policy action.
“Large establishments drove the slowdown, losing 83,000 jobs and wiping out gains they made in August,” according to the ADP report.
Apart from a “steepening decline in jobs this month,” ADP chief economist Nela Richardson noted: “Additionally, we are seeing a steady decline in wages in the past 12 months.”
Most of the September job gains in the world’s largest economy were driven by service-providing industries such as leisure and hospitality, but other areas like professional and business services slumped.
Pay growth was 5.9 percent from a year ago in September, the 12th consecutive month of slowing growth, said ADP.
“Overall, job growth remains positive. But the pace should continue to moderate on the lagged and cumulative effects of restrictive monetary policy,” said Rubeela Farooqi, chief US economist at High Frequency Economics.
Looking ahead, analysts are keeping an eye on government payrolls figures, which can diverge from the ADP data.
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