The increase in private sector employment slowed considerably in September from the robust pace of August.
August saw the addition of 237,000 payroll positions.
Hurricanes Harvey and Irma, according to ADP Research Institute President Ahu Yildirmaz, “significantly impacted smaller retailers. In addition, the continued slow down we have seen in small business hiring could be due to a lack of competitive compensation to attract skilled talent.”
Indeed, small businesses, which are often in the forefront of job creation, saw the loss of 7,000 positions in September. Large businesses were responsible for the bulk of last month's additions (+79,000 jobs), followed by medium-sized firms (+63,000).
Jobs by industry
As is generally the case, most of the hiring was done in the services sector, where there were 88,000 new jobs.
The strength was found in professional/business services (+51,000), professional/technical services (+40,000), and education/health services (+29,000), which offset losses in trade/transportation/utilities (-18,000) and Information (-11,000).
The goods-producing sector cranked out 48,000 new jobs, led by construction (+29,000), manufacturing (+18,000), and natural resources/mining (+1,000).
Moody's Analytics Chief Economist Mark Zandi said while Harvey and Irma hurt the job market in September, things look stable for the future. “Looking through the storms, the job market remains sturdy and strong," he said.
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