United States private sector employment shed 32,000 jobs in September, though pay rose by 4.5% from the previous year.
Jobs were lost across most sectors, according to ADP’s National Employment Report. September’s losses were the largest decrease since March 2023.
“Despite the strong economic growth we saw in the second quarter, this month's release further validates what we've been seeing in the labour market, that U.S. employers have been cautious with hiring,” said ADP chief economist Nela Richardson.
Economists surveyed by Dow Jones had projected 45,000 jobs would be added in September.
The goods-producing industry shed 3,000 jobs last month, while the service-providing industry lost 28,000. Leisure/hospitality recorded the largest decline, dropping 19,000 jobs.
The only sectors to report an increase in jobs were education/health services, which posted 33,000 new jobs, and natural resources/mining, which added 4,000.
Job losses were concentrated with small- and medium-sized businesses, which lost 40,000 and 20,000 jobs respectively. Businesses with more than 500 employees added 33,000 jobs.
The Midwest was also the only major region to report a decrease in jobs. Around 63,000 jobs were lost across the Midwest last month, while the Northeast, South, and West all saw net gains.
Employees who remained in the same job saw pay increase by 4.5% year-over-year, stable from the previous month.
Pay rose by at least 4% in all sectors for workers who stayed in the same job. The financial activities sector reported the largest increase, at 5.2%.
Workers who changed jobs recorded a 6.6% rise in pay, though this is less than the 7.1% seen in August.
U.S. job openings, hiring numbers, and separation numbers were all largely unchanged in August, according to the Bureau of Labor Statistics. The agency's September nonfarm payrolls report is due on Friday, but will not be released if the U.S.' government shutdown continues.
The Federal Reserve cited the U.S.’ slowing labour market in its decision to cut rates in September. The Fed will next meet on 28-29 October, with markets expecting a 25 basis point rate cut.
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