U.S. private sector adds just 89,000 jobs in September: ADP

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U.S. private sector adds just 89,000 jobs in September: ADP

Investing.com -- The U.S. private sector added far smaller-than-forecast 89,000 jobs in September, according to a report by payrolls processor ADP (NASDAQ: ADP ) on Wednesday, in what was the slowest pace of growth since January 2021, when private employers shed jobs.

Economists had expected the private sector to have added 153,000 jobs last month.

August's figure was revised up to show job gains of 180,000 from the gain of 177,000 that was initially reported.

Large establishments drove the slowdown, losing 83,000 jobs and wiping out gains they made in August, the report said.

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

The ADP numbers came a day after data showing that job vacancies -- often viewed as a proxy of demand for workers -- unexpectedly rose in August. The strong reading had underlined the picture of a fairly resilient labor market and reinforced expectations that the Federal Reserve will stick to its 'higher for longer' stance on interest rates.

Investors are looking ahead to the Labor Department's weekly report on initial jobless claims on Thursday and what will be a closely watched nonfarm payrolls report for September on Friday.

The U.S. economy is expected to have added 163,000 jobs last month, slowing slightly from 187,000 in August.

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