Private Sector Job Gains Outpace Forecasts In September As US Adds 143,000 Jobs

The U.S. private sector added 143,000 jobs in September, surpassing expectations of 124,000 jobs and reflecting a rebound in job creation following a five-month slowdown, according to the latest ADP National Employment Report released on Wednesday.

Pay growth for both job-stayers and job-changers continued to slow, indicating a cooling labor market. Notably, the manufacturing sector added jobs for the first time since April, while job losses were confined to the information sector.

"Stronger hiring didn't require stronger pay growth last month," said Nela Richardson, ADP's chief economist. "Typically, workers who change jobs see faster pay growth. But their premium over job-stayers shrank to 1.9 percent, matching a low we last saw in January."

The ADP report is often viewed as a preview of the government's official jobs data, set to be released on Friday.

ADP National Employment Report: Key Highlights

• Private employers added 143,000 jobs in September.
• Goods-producing sectors added 42,000 jobs, with 14,000 in natural resources/mining and 26,000 in construction.
• Service-providing sectors saw 101,000 new jobs, with 34,000 added in leisure/hospitality and 20,000 in professional/business services.
• Job-stayers’ annual pay growth slowed to 4.7%, while job-changers’ pay gains fell to 6.6%.
• The South led all U.S. regions, adding 61,000 jobs, while small establishments (1-19 employees) lost 13,000 jobs.
• Large establishments (500+ employees) saw the most growth, with 86,000 jobs added.

Market Reactions

• The U.S. Dollar Index (DXY), as tracked by the Invesco DB USD Index Bullish Fund ETF UUP, rose 0.12%.
• Gold, as tracked by the SPDR Gold Trust GLD, fell 0.45%.
• Futures on U.S. equity indices fell during the premarket trading Wednesday. Contracts on the Nasdaq 100 and the S&P 500 were down by 0.07% and 0.23%, respectively, by 8:20 a.m. ET.
• On Tuesday, the SPDR S&P 500 ETF Trust SPY closed 0.9% lower, while the tech-heavy Invesco QQQ Trust QQQ was down 1.39%.

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Image created using artificial intelligence via Midjourney.