The National Employment Report indicated that private sector employment increased by 135,000 jobs from August to September, rising mostly in the service-providing sector.
Once again, jobs in the good-producing sector, including construction and manufacturing, experienced a monthly increase. However, mining, which fell last month, continued its decline as employment in the industry decreased, according to ADP Research Institute and Moody’s Analytics.
“The job market has shown signs of a slowdown,” said Ahu Yildirmaz, vice president and co-head of the ADP Research Institute. “The average monthly job growth for the past three months is 145,000, down from 214,000 for the same time period last year.”
The chart below demonstrates the rate of increase since 2013:
The report reveals that the number of jobs added in August was revised down from 195,000 to 157,000.
“Businesses have turned more cautious in their hiring,” said Mark Zandi, chief economist of Moody’s Analytics. “Small businesses have become especially hesitant. If businesses pull back any further, unemployment will begin to rise.”
Below is a breakdown of job segments that saw changes in employment between August and September:
Natural resources and mining: Decreased 3,000 jobs
Construction: Increased 9,000 jobs
Manufacturing: Increased 2,000 jobs
The service-providing sector increased by 127,000 jobs, including:
Information: increased 5,000 jobs
Financial activities: Increased 8,000 jobs
Professional and business services: Increased 20,000 jobs
Education and health services: Increased 42,000 jobs
Leisure and hospitality: Increased 18,000 jobs
Other services: Increased 5,000 jobs
NOTE: This report is a monthly measure of the change in total U.S. non-farm private employment derived from actual, anonymous payroll data of client companies served by the company. The data is collected and processed with statistical methodologies similar to those used by the U.S. Bureau of Labor Statistics.