It’s the biggest deceleration in salary in a three-year history
According to the ADP National Employment Report, US private-sector employment rose by 208,000 jobs in September compared to August, but growth remains below the three-month average. All of September’s job gains were in the service-providing sectors. In addition, the job gains in August of 185,000 was revised upward from the 132,000 initially reported.
ADP’s report also found mixed news in terms of pay data in September.
Nela Richardson, Chief Economist at ADP commented: “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.”
ADP noted September’s job gains appeared as schools reopened and pandemic concerns faded.
In terms of pay, job-changers’ annual pay rose 15.7% in September, down from a revised 16.2% in August — it’s the biggest deceleration in the three-year history of the report’s data. For job-stayers, annual pay rose 7.8% in September, up from the 7.7% in August.
Here are the jobs added in September by sector:
- Goods-producing, down 29,000
- Natural resources/mining, down 16,000
- Construction, 0
- Manufacturing, down 13,000
- Service-providing, up 237,000
- Trade/transportation/utilities, 147,000
- Information, down 19,000
- Financial activities, down 16,000
- Professional/business services, up 57,000
- Education/health services, up 38,000
- Leisure/hospitality, up 31,000
- Other services, down 1,000
The ADP National Employment Report is an independent estimate of change in US private employment and pay derived from actual, anonymized payroll data of client companies served by ADP. It’s produced by the ADP Research Institute in collaboration with the Stanford Digital Economy Lab.
The report was recently revamped and is no longer a forecast of the private payroll numbers produced by the US Bureau of Labor Statistics.
The BLS is slated to publish its report on August jobs data on Friday.
