The private sector added 91,000 jobs from August to September according to the ADP National Employment Report ®. This month’s growth follows a downward revision of August’s growth (89,000 down from 91,000). September’s growth is slightly better than August’s revised growth and significantly better than the lows seen in May (35,000).
The growth in private sector jobs was driven primarily by service sector jobs, which grew by 90,000, representing 21 straight months of growth. The goods sector expanded by just 1,000 after growing 6,000 in August. Manufacturing continued to fall in September, contracting by 5,000.
Traditionally, payrolls must grow at least around 150,000 in order to absorb all of the new entrants into the job market. As such, 90,000 additional jobs will not likely be enough to keep the unemployment rate flat. We will need to see growth closer to 200,000 and above before we begin to see the unemployment rate begin to drop.
Read the release.