The debate continues about the labor market as September created more jobs than expected, according to the latest ADP jobs report.
- Businesses created 208,000 jobs in September, up from a revised 185,000 in August.
- This was higher than economists’ projections of 200,000.
In The Middle. Medium-sized businesses had the best month with 90,000 new employees followed by large companies (+60k) and small businesses (+58k).
Service With A Smile. The Service sector blew the goods-producing sectors out of the water with 237,000 new jobs in September compared to the goods sector losing sector which lost 29,000.
- Trade/transportation/utilities were responsible or 70.7% of all the jobs gains in September with 147,000 newly created positions followed by professional/business services (+57k) and leisure/hospitality (+31k).
- In the goods-producing sector, construction had the best month with zero job growth followed by natural resources/mining (-16k) and manufacturing (-13k).
South #1. Not surprisingly, the South took the top spot with 89,000 new jobs followed by the West (+55k), the Northeast (+39k), and the Midwest (-25k).
Analysis. Nela Richardson, chief economist, ADP, said the labor market remains steady. “We are continuing to see steady job gains…While job stayers saw a pay increase, annual pay growth for job changers in September is down from August.”