Private sector employment increased by 200,000 in September, according to payroll giant ADP, in another sign of an improving economy, albeit with some negative indicators.
Small businesses added 37,000 jobs last month, although that was less than half the amount added in August. That total included about 19,000 gained in businesses with between one and 19 employees, and approximately 19,000 in companies with between 20 and 49 employees.
Midsize businesses with between 50 and 499 employees gained 56,000 new jobs in September, but that was 18,000 fewer than in August.
Employment gains at large companies—those with 500 or more employees—rose dramatically from August, adding 106,000 jobs in September. While companies with between 500 and 999 employees lost 3,000 jobs, businesses with 1,000 employees or more added 109,000 jobs, accounting for over half the total jobs gained in September.
Service-providing businesses gained 188,000 jobs in September, up from 172,000 in August. Professional and business services, which include accounting, tax preparation and other services, contributed 29,000 jobs in September, roughly equivalent to the 30,000 jobs gained in August. The combined trade, transportation and utilities sector grew by 39,000, up from 25,000 the previous month. The 15,000 new jobs added in financial activities in September were on par with the 14,000 added in August. Franchise businesses added 33,000 jobs in September, up 0.4 percent from August.
Goods-producing employment rose by 12,000 jobs in September, down from 15,000 the previous month. The construction industry added 35,000 jobs in September, nearly double the 18,000 gained in August. However, manufacturing dropped into negative territory, losing 15,000 jobs in September, the worst showing since December 2010.
“Another month, another 200,00 jobs in the U.S. job market,” said Mark Zandi, chief economist of Moody’s Analytics, which compiles the monthly employment report with ADP. “It’s very consistent, strong employment growth. We’ve gotten 200,000 to 225,000 jobs per month pretty consistently now for close to three years, and that’s very strong performance. We need a little more than half that job growth to absorb the growth in the working age population, so at this pace of job growth we’re quickly working down the slack in the labor market.”
He expects to reach a state of what economists consider to be full employment by the summer of 2016 if the current pace of job growth continues. The main headwinds are coming from job losses in the energy sector due to declining oil prices, as well as the troubled global economy and the strong dollar, which are having a negative impact on manufacturing jobs in the U.S. On the other hand, booming sales in vehicles are helping propel more vehicle-manufacturing jobs, making up somewhat for jobs losses in other parts of the manufacturing sector.
Register or login for access to this item and much more
All Accounting Today content is archived after seven days.
Community members receive:
- All recent and archived articles
- Conference offers and updates
- A full menu of enewsletter options
- Web seminars, white papers, ebooks
Already have an account? Log In
Don't have an account? Register for Free Unlimited Access