WASHINGTON — U.S. private payrolls increased more than expected in September, boosted by hiring in the construction, leisure and hospitality industries, adding to the evidence of a stable labor market.
The release of the ADP National Employment Report on Wednesday followed government data on Tuesday that showed there were 1.13 job openings for every unemployed person in August compared to 1.08 in July.
Private payrolls increased by 143,000 jobs last month after rising by an upwardly revised 103,000 in August, the report showed.
Economists polled by Reuters had forecast private employment would advance by 120,000 positions after a previously reported gain of 99,000 in August.
Construction employment increased by 26,000. The leisure and hospitality sector added 34,000 jobs. There were also solid job gains in education and health services as well as professional and business services. Modest payroll increases were recorded in the financial activities and manufacturing industries.
The information industry shed 10,000 positions, the only sector to report job losses. Last month’s job gains were spread across medium-sized and large businesses.
Small businesses, which had accounted for the bulk of employment gains in the past, shed 8,000 positions. Wages for workers remaining in their jobs increased 4.7% on a year-over-year basis after a rise of 4.8% in August.
That jump slowed to 6.6% for those changing jobs, down from a 7.3% advance in August. That is consistent with a decline in the number of workers quitting their jobs for greener pastures.
The Federal Reserve last month cut its benchmark interest rate by an unusually large 50 basis points to the 4.75%-5.00% range, the first reduction in borrowing costs since 2020, in a nod to rising concerns over the labor market’s health.
The U.S. central bank is expected to cut interest rates again in November and December.