Yesterday Automatic Data Processing Inc. (ADP) reported that private sector employment increased by 166,000 jobs from August to September. Of the 166,000 jobs created, small businesses with 1-49 employees added the most jobs with 74,000. Followed by medium-sized businesses with 50-499 employees adding 28,000 jobs and large businesses with 500-1000+ employees added 64,000 jobs.
According to the ADP National Employment Report the Service Sector added 147,000 jobs in during the period, while the Goods Producing Sector added 19,000 jobs. While job growth is happening the rate of job growth appears to be more related to replacement of existing positions than real job growth. Economic confidence continues to elude the nation which has become compounded by the recent shutdown of the Federal government.
Chief economist, Mark Zandi of Moody's Analytics, said “The job market appears to have softened in recent months. Fiscal austerity has begun to take a toll on job creation. The run-up in interest rates may also be doing some damage to jobs in the financial services industry. While job growth has slowed, there remains a general resilience in the market. Job creation continues to be consistent with a slowly declining unemployment rate”.
The ADP National Employment Report is a monthly report of the change in total U.S. non farm private employment collected through anonymous ADP client companies. ADP National Employment Report measures almost 24 million workers trends. The report is produced by ADP Research Institute in collaboration with Moody's Analytics, Inc. To view the full report can go to http://www.adpemploymentreport.com.
The next ADP National Employment Report will be released on October 30, 2013 that will cover jobs created in October 2013.
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