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More private sector jobs have been added than expected

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The labor market is shifting.


SOPA images | Getty Images

ADP is a payroll and HR company.

Amid fears of a recession, layoffs and cuts, and 8.3% annualized inflation as of August 2022, employers could be back in power.

According to National Employment Report from ADP, which uses payroll company data from more than 500,000 employers in the US, jobs increased by 208,000. In August, 185,000 jobs were reported.

For September, ADP reported job growth of 208,000. This is higher than the revised number in August, 185,000 jobs.

This increase was also higher than the Dow Jones estimate of 200,000, according to CNBC.

The pandemic has pushed a variety of people out of work, between childcare demands, layoffs and… disease. However, the report did indicate that a pandemic-era labor trend, the Great Resignation, which many workers in a diminished labor market used to get better benefits or start a business may be on the wane.

Job changers’ pay increases slowed in August after a jump since the summer of 2021, ADP said.

The annual median change in pay for job changers was 15.7% in September. In August, that revised number was 16.2%.

“It’s the biggest slowdown in the three-year history of our data,” the company said. People who stayed in work saw their annual salary rise by a median of 7.8% in September.

The report also shows the rise and fall of employment in various sectors. “Commodity producing”, including natural resources and mining, construction and manufacturing, lost 29,000 jobs.

Trade, transportation and utilities, a big bucket of things like moving goods and working at an electric company, made the biggest profit, at 147,000. Horeca, an industry that Reportedly struggled to hire staff since the pandemic saw an increase of 31,000 jobs in September.

The ADP report is one of many labor metrics that economics watchers rely on.

The Bureau of Labor Statistics publishes several reports, including the “jobs report,” also known as nonfarm payrolls, that measure employment in the US. It will be released on Friday.

ADP has a market cap of nearly $100 billion.

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