ADP reported a surprise decline in jobs for September. The company said that 39,000 jobs were lost, missing expectations for a 18,000 gain according to Finviz. However, the previous month’s jobs decline was reported higher, from a 10,000 loss to a 10,000 gain.
The decline in private employment in September confirms a pause in the economic recovery already evident in other data. A deceleration of employment occurred in all the major sectors shown in The ADP Report and for all sizes of payroll. The September decline in employment followed seven monthly increases from February through August. However, over those seven months, the average monthly gain in employment was 34,000. There simply is no momentum in employment.
September’s ADP Report estimates employment in the service-providing sector rose by 6,000 in September, the eighth consecutive monthly gain. This increase was not enough to offset an employment decline in the goods-producing sector of 45,000. Construction employment dropped by 28,000 during September and manufacturing employment declined 17,000, the third consecutive monthly decline.
Large businesses, defined as those with 500 or more workers, saw employment decline 11,000 while employment among medium-size businesses, defined as those with between 50 and 499 workers, decreased by 14,000. Employment among small-size businesses, defined as those with fewer than 50 workers, decreased by 14,000.*
In September, construction employment dropped 28,000. Construction employment has declined for over three years and the total decline in construction jobs since the peak in January 2007 is 2,297,000. Employment in the financial services sector dropped 13,000. Financial Services employment has declined for over 3 years.
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