ADP: Private sector added 89,000 jobs; slowest growth rate since 2021

Oct. 4 (UPI) -- Private sector employment grew by 89,000 jobs, the slowest pace of job growth in more than two years as the economy shows signs of pacing itself, according to the latest monthly ADP National Employment Report released Wednesday.

The report, which comes out two days before the official jobs report from the Labor Department, calculates how many private non-farm jobs have been added or subtracted from the economy over a one calendar month period.

"September showed the slowest pace of growth since January 2021, when private employers shed jobs," the report said. "Large establishments drove the slowdown, losing 83,000 jobs and wiping out gains they made in August."

The report, produced by ADP Research Institute in collaboration with the Stanford Digital Economy Lab, also showed that annual pay was up 5.9% over the same period last year. That marked the 12th straight month of slowing growth.

"We are seeing a steepening decline in jobs this month," said Nela Richardson, chief economist for ADP. "Additionally, we are seeing a steady decline in wages in the past 12 months."

Small businesses -- with 49 or fewer employees -- kept the economy's job growth in the positive with 95,000 hires in September to offset the 83,000 jobs lost by large businesses, which hire more than 500 people.

Professional/business services jobs fell by 32,000, followed by a decline of 13,000 in trade/transportation/utilities and 12,000 in manufacturing, marking the biggest job hits in September.

Regionally, the South lost 16,000 jobs in September while the West gained 66,000, most of that in the Pacific region.