The private sector barely added more jobs in September than the prior month, and the pace of job creation remains slow, according to the ADP National Employment Report. Automatic Data Processing Inc. (ADP) said nonfarm private payrolls increased by 91,000 jobs last month on a seasonally adjusted basis. That’s up from the revised 89,000 for August, which was lowered from 91,000 previously reported. The payroll giant conducts the monthly survey, which excludes federal jobs, in conjunction with Macroeconomic Advisers. The consensus estimate of analysts surveyed by Econoday called for 90,000 new private-sector jobs in September with a range of estimates from -10,000 to 100,000. Back in March the private sector added 207,000 new jobs on the heels of 217,000 new jobs in February. Then in May, the private sector added just 38,000 new jobs. Small businesses in the servicing sector added jobs for the 22nd straight month and accounted for nearly two-thirds of new jobs in September. “Like August, this month’s jobs report continues to show modest job creation,” said Gary Butler, chief executive of ADP. Joel Prakken, chairman of Macroeconomic Advisers, said the moderate growth “probably is below a pace consistent with a stable unemployment rate,” and “consistent with the recent deceleration of GDP.” TrimTabs Investment Research estimates the economy added 64,000 jobs in September. “The good news is that employment was positive in September,” according to Madeline Schnapp, director of macroeconomic research at TrimTabs. “The bad news is unemployment is likely to increase because the economy is not producing the 125,000 new jobs needed monthly to offset population growth.” She said recent positive economic news in America has done little to avert attention away from the sovereign debt crisis in Europe. TrimTabs expects slower U.S. economic growth because wages and salaries are decreasing, and consumers aren’t spending. And Schnapp wonders what policymakers in Washington can do. “If the economic slowdown continues, we are sure Fed Chairman Bernanke has one more economic souffle baking in his oven,” she said. “But souffle’s are inherently unstable. While they look spectacular at first glance, they deflate without much warning, leaving the taxpayer with scrambled eggs.” Schnapp expects the lackluster growth to push the unemployment rate higher than the 9.1% for August. On Friday, the Labor Department reports September nonfarm payroll data. Meanwhile, President Obama pitched his jobs bill in a familiar speech Tuesday in Mesquite, Texas. Write to Jason Philyaw. Follow him on Twitter: @jrphilyaw.
Most Popular Articles
The year 2020 is now upon us, and as we say goodbye to 2019, we welcome a new decade and all the twists and turns it will bring for the housing industry.
According to a new data set from the National Association of Home Builders, Millennials care just as much (if not more) about they want in a house rather than what they need.