ADP: Service Sector Leads Small September Jobs Gains
“The job market appears to have softened in recent months. Fiscal austerity has begun to take a toll on job creation,” said Moody’s Analytics chief economist Mark Zandi, whose firm helps compile payroll processor ADP’s National Employment Report. However, “while job growth has slowed, there remains a general resilience in the market. Job creation continues to be consistent with a slowly declining unemployment rate,” he said in the report.
But still, the 166,000 jobs United States employers added to their payrolls in the month of September fell below economist expectations for 180,000 additions. September’s job gain was marginally better than August’s revised 159,000 job increase, a smaller figure than originally estimated.
It is important to remember than ADP’s report is typically seen as less accurate than the government’s numbers, which ordinarily would be released Friday as part of the Bureau of Labor Statistics’s Employment Situation report. For example, in August, ADP initially announced that 176,000 new jobs were created, but the government’s monthly report showed that only 162,000 jobs were created, even though the unemployment rate dropped from July’s 7.4 percent to 7.3 percent.
The unemployment rate ticked down largely as the result of job hunters dropping out of the workforce, not because of high job creation. The consensus estimate for August’s employment report is 181,000 new jobs and for the unemployment rate to hold steady at 7.3 percent. BLS numbers include government workers, while ADP’s report does not.