Hiring continues to slow, according to this morning’s report from payrolls processor ADP. The monthly ADP National Employment Report shows that private-sector employers added 135,000 jobs in September.
Prior to the report’s release, economists polled by Bloomberg projected the addition of 140,000 jobs to private payrolls. But even if gains had kept pace with expectations, hiring would be on the decline.
“The job market has shown signs of a slowdown,” said Ahu Yildirmaz, vice president and co-head of the ADP Research Institute, in a statement. “The average monthly job growth for the past three months is 145,000, down from 214,000 for the same time period last year.”
Where Jobs Are Growing
“Businesses have turned more cautious in their hiring,” said Mark Zandi, chief economist of Moody’s Analytics, which produces the report with ADP. “Small businesses have become especially hesitant. If businesses pull back any further, unemployment will begin to rise.”
Small businesses added the fewest jobs last month; businesses with fewer than 50 employees added just 30,000 jobs. Medium-sized employers tallied 39,000 jobs, while large businesses with 500 or more employees added 67,000 jobs.
On the goods-producing side, construction added 9,000 jobs and manufacturing added 2,000 jobs, while mining shed 3,000 jobs.
Several industries added jobs in the service-providing sector, including health care (+35,000 jobs), trade/transportation/utilities (+28,000 jobs), professional/business services (+20,000 jobs) and leisure/hospitality (+18,000 jobs).
Looking Ahead to the Labor Report
Friday’s report from the Department of Labor will include data on jobs added to public and private non-farm payrolls, plus the revised unemployment rate and information about wage growth. Economists polled by Reuters expect the report to show an increase of 145,000 jobs in September.
The PayScale Index, which tracks the change in wages for employed U.S. workers, showed 2% year-over-year wage growth for Q2 2019. However, real wages have declined 9.8% since 2006.
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