Private-sector hiring in the United States surged in September, with companies adding 90,000 new jobs. According to the latest report released Wednesday by payroll processor Automatic Data Processing (ADP), this figure surpassed the consensus forecast of 75,000 jobs expected by economists surveyed by Bloomberg. It also marked a sharp recovery from the revised reading of 36,000 jobs in August.
This positive rebound brings an end to a three-month streak of slowing job creation. ADP Chief Economist Nela Richardson described the data as a strong report, driven by a combination of recovering hiring activity and resilient wage growth momentum.
In terms of earnings, the U.S. workforce continues to enjoy healthy wage growth; base pay rose 3.2% year-over-year, while average gross pay jumped 4.7%. The most significant income gains were recorded by workers who switched employers, demonstrating that companies remain willing to offer attractive compensation packages to lure qualified talent.
Job creation this month was driven primarily by the education and healthcare sectors, supported by continued activity in the leisure and hospitality industries. However, weakness persisted in sectors sensitive to capital costs and high interest rates; the financial sector shed 16,000 jobs, while the professional and business services segment contracted by 11,000 positions. This ADP private-sector payroll data serves as a key leading indicator ahead of the U.S. Department of Labor's comprehensive Non-Farm Payrolls (NFP) report on Friday. The ADP reading, which exceeded forecasts, reinforces the view that underlying economic activity remains robust, thereby complicating the Federal Reserve's upcoming monetary policy considerations.
