US ADP private payrolls fell by -32k in September, far below expectations for a 50k increase and marking the steepest drop in two and a half years. August’s figures were also revised down to a loss of -3k from an initially reported gain of 54k.
The breakdown showed broad-based weakness. Service providers cut -28k jobs, while goods producers shed -3k. Small businesses were hit hardest, losing -40k positions, whereas large firms with 500 or more employees managed to add 33k.
ADP’s chief economist Nela Richardson said the data “further validates what we’ve been seeing in the labor market, that US employers have been cautious with hiring.”
Despite the slowdown, wage growth held steady. Average pay rose 4.5% yoy in September, little changed from August. However, the pace for job changers eased to 6.6% yoy, down half a percentage point, suggesting wage momentum is beginning to cool alongside weaker employment growth.
