Private sector job growth cools sharply in September to slowest pace since 2021: ADP
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Hiring by U.S. companies slowed more than expected in September, pointing to a labor market that is starting to cool in the face of higher interest rates, according to the ADP National Employment Report released Wednesday morning.
Companies added 89,000 jobs last month, below the 153,000 gain that economists surveyed by Refinitiv predicted. That is also much lower than the revised 180,000 increase recorded in August.
It marked the worst month for job creation since January 2021.
«We are seeing a steepening decline in jobs this month,» said Nela Richardson, ADP chief economist. «Additionally, we are seeing a steady decline in wages in the past 12 months.»
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Attendees at a career fair at a community college in Bolivia, North Carolina, on April 20, 2023. (Photographer: Allison Joyce/Bloomberg via Getty Images / Getty Images)
The weaker-than-expected report comes in the wake of an aggressive tightening campaign by the Federal Reserve, which has hiked rates to the highest level since 2001. Fed officials, including Chair Jerome Powell, have opened the door to at least one more hike this year – and have signaled that rates will remain elevated for longer as they assess whether high inflation has retreated for good.
In a potentially welcoming sign for the Fed as it tries to wrangle inflation under control, wages continued to moderate in September.
Annual pay rose 5.9% last month, the 12th straight month of slowing growth, according to the report. For workers who switched jobs, wages climbed 9%, down from 9.7% the previous month.
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