The United States government will not be publishing much of its economic data next week due to its shutdown; however, the ADP Research Institute in Roseland, New Jersey has released its latest data where it shows that there has been an increase of 166,000 jobs which when revised is reduced to 159,000 in August.
The research institute says that the numbers are not what they were expected and projected. According to the organization though goods producing employment rose by 19,000 in September, a slight increase over its August growth rate. Similarly, construction payrolls added 16,000 jobs. On the other hand manufacturing sector added 1,000 jobs.
The report from the ADP Research Institute also reveals that service providing industries added 147,000 jobs in September which is quite low compared to August wherein it hired 152,000. The research institute tells that trade/transportation/utilities were the major contributor in employment generation that added the most jobs with 54,000 over the month.
On the other hand, professional/business services employment rose by 27,000. The number of employment generation was 4,000 for financial activities sector. According to Carlos A. Rodriguez, President and Chief Executive Officer of ADP during the month of September, the U.S. private sector added a total of 166,000 jobs. From the data shown, it looks like the job market has softened in recent months.
The report from the ADP Research Institute also tells that interestingly, the growth was higher for small companies as businesses with 49 or fewer employees added 74000 jobs in September. On the other hand, employment levels among medium-sized companies with 50-499 employees rose by 28000. The report there was attractive growth in employment at large companies i.e. those with 500 or more employees as here 64,000 jobs were created in September.
According to analysts, fiscal austerity has begun to take a toll on job creation and the run-up in interest rates may also be doing some damage to jobs in the financial services industry. 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.
Data from Bureau of Labor Statistics is expected to come on 4th October
The report from the Labor Department’s Bureau of Labor Statistics is awaited. It is expected to be released tomorrow; however, as all non-essential federal employees would stop working, including BLS, a delay is expected.
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