While the Bureau of Labor Statistics didn’t release a jobs report for September — blame the government shutdown — the independent “ADP National Employment Report®” indicates that the private sector shed 32,000 jobs in September, while pay was up 4.5% year-over-year.
The report is based on anonymized weekly payroll data of more than 26 million private-sector employees in the United States, and ADP’s Pay Insights captures nearly 14.8 million individual pay change observations each month. Together, the jobs report and pay insights use ADP’s data to provide a representative and high-frequency picture of the private-sector labor market.
“Despite the strong economic growth we saw in the second quarter, this month’s release further validates what we’ve been seeing in the labor market, that U.S. employers have been cautious with hiring,” Dr. Nela Richardson, ADP’s chief economist, said in a statement.
Companies with 20 to 49 employees experienced the greatest loss of jobs (21,000), while large companies with 500 or more employees added 33,000 jobs. The greatest increase came in education and health services (33,000), followed by natural resources and mining (4,000). Meanwhile, jobs in the leisure and hospitality business fell by 19,000, with professional and business services losing 13,000 jobs.
Regionally, the Midwest experienced the greatest loss, with 63,000 jobs gone. All other regions of the country, led by the Northeast, saw an increase in the number of jobs.
Additionally, while year-over-year pay growth for job-stayers changed little in September (4.5%), pay gains for job-changers slowed to 6.6%, down from 7.1% in August — led by leisure and hospitality and financial activities.
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