Private sector employment increased by 89,000 jobs in September and annual pay was up 5.9 percent year-over-year, according to the September ADP National Employment Report produced by the ADP Research Institute in collaboration with the Stanford Digital Economy Lab. The ADP National Employment Report is an independent measure and high-frequency view of the private-sector labor market based on actual, anonymized payroll data of more than 25 million U.S. employees.
The jobs report and pay insights use ADP’s fine-grained anonymized and aggregated payroll data to provide a representative picture of the private-sector labor market. The report details the current month’s total private employment change, and weekly job data from the previous month. Because the underlying ADP payroll databases are continuously updated, the report provides a high-frequency, near real-time measure of U.S. employment. This measure reflects the number of employees on ADP client payrolls (Payroll Employment) to provide a richer understanding of the labor market. ADP’s pay measure uniquely captures the earnings of a cohort of almost 10 million employees over a 12-month period.
“We are seeing a steepening decline in jobs this month,” said Nela Richardson, chief economist ADP. “Additionally, we are seeing a steady decline in wages in the past 12 months.”
JOBS REPORT
Private employers added 89,000 jobs in September
September showed the slowest pace of growth since January 2021, when private employers shed jobs. Large establishments drove the slowdown, losing 83,000 jobs and wiping out gains they made in August.
Change in U.S. Private Employment: 89,000
Change by Industry Sector
– Goods-producing: 8,000
- Natural resources/mining 4,000
- Construction 16,000
- Manufacturing -12,000
– Service-providing: 81,000
- Trade/transportation/utilities -13,000
- Information 1,000
- Financial activities 17,000
- Professional/business services -32,000
- Education/health services 10,000
- Leisure/hospitality 92,000
- Other services 6,000
Change by U.S. Regions
– Northeast: 34,000
- New England -1,000
- Middle Atlantic 35,000
– Midwest: 2,000
- East North Central 0
- West North Central 2,000
– South: -16,000
- South Atlantic 43,000
- East South Central 15,000
- West South Central -74,000
– West: 66,000
- Mountain 9,000
- Pacific 57,000
Change by Establishment Size
– Small establishments: 95,000
- 1-19 employees 67,000
- 20-49 employees 28,000
– Medium establishments: 72,000
- 50-249 employees 55,000
- 250-499 employees 17,000
– Large establishments: -83,000
- 500+ employees -83,000
Pay Insights
Pay growth slowed again in September
Job stayers saw a 5.9 percent year-over-year pay increase in September, marking the 12th straight month of slowing growth. Pay gains also shrank for job changers, to 9 percent, down from 9.7 percent in August.
Median Change in Annual Pay (ADP matched person sample)
- Job-Stayers 5.9%
- Job-Changers 9.0%
Median Change in Annual Pay for Job-Stayers by Industry Sector
– Goods-producing:
- Natural resources/mining 5.5%
- Construction 6.0%
- Manufacturing 5.4%
– Service-providing:
- Trade/transportation/utilities 5.7%
- Information 5.5%
- Financial activities 6.2%
- Professional/business services 5.8%
- Education/health services 6.4%
- Leisure/hospitality 6.7%
- Other services 5.9%
Median Change in Annual Pay for Job-Stayers by Firm Size
– Small firms:
- 1-19 employees 5.0%
- 20-49 employees 5.9%
– Medium firms:
- 50-249 employees 6.1%
- 250-499 employees 6.0%
– Large firms:
- 500+ employees 6.0%
To see Pay Insights by U.S. State, Gender, and Age for Job-Stayers, visit here.
