US private sector employment grows by 143,000 jobs in Sept, pay up 4.7%

Private sector employment in the US rose by 143,000 jobs in September, while annual pay increased by 4.7 per cent year-on-year, according to the ADP National Employment Report. This marks a rebound after a five-month slowdown in job creation.

The growth was broad-based, with manufacturing adding jobs for the first time since April, while the information sector lost 10,000 jobs. Regional job gains were led by the South, which added 61,000 positions, followed by the Northeast with 32,000.

Despite the job gains, pay increases have slowed. Job-stayers saw a 4.7 per cent rise in annual pay, while job-changers experienced a 6.6 per cent increase, down from 7.3 per cent in August. This suggests that pay growth is cooling, particularly for those switching jobs.

Nela Richardson, chief economist at ADP, noted, “Stronger hiring didn’t require stronger pay growth last month,” as the premium for job-changers narrowed.

Small businesses lost 8,000 jobs, while large firms (500+ employees) saw the most growth, adding 86,000 positions.

Attribution: ADP National Employment Report

Subediting: Y.Yasser