Private sector employment in the United States grew by 90,000 positions in September, outperforming Wall Street expectations and indicating a rebound in the labor market, according to data released Wednesday by ADP.
The increase marked a significant acceleration from the downwardly revised 36,000 jobs added in August. The figure also exceeded the Dow Jones consensus estimate of 68,000, suggesting resilience in the job market despite recent economic uncertainties.
Nela Richardson, ADP chief economist, characterized the findings as a positive sign. “After a three-month slowdown, job creation rebounded and pay growth remained solid,” Richardson stated. She noted that base wages rose 3.2% compared to the prior year, while gross pay accelerated by 4.7%.
The report showed a balanced distribution of growth between service providers, who added 59,000 roles, and goods producers, who contributed 31,000 positions. The health care and education sectors led the expansion with 55,000 new hires. Other areas of strength included leisure and hospitality, which saw 22,000 jobs added, manufacturing with 17,000, and construction with 15,000.
Conversely, several industries experienced contraction. Financial activities shed 16,000 jobs, professional and business services lost 11,000, and the natural resources and mining sector reported a decline of 1,000.
Geographically, the Northeast was the primary driver of growth, accounting for 56,000 of the new positions. In terms of company size, businesses employing between 50 and 499 workers were the largest contributors, adding 54,000 jobs.
The ADP monthly employment report is widely viewed as a precursor to the Bureau of Labor Statistics’ nonfarm payrolls data, scheduled for release on Friday. Economists are forecasting the government report will show an increase of 84,000 jobs, down from the 162,000 rise recorded the previous month, with the unemployment rate expected to remain steady at 4.1%.
Market analysts noted that the stronger-than-expected figures align with comments from Federal Reserve officials who have expressed confidence that the labor market remains fundamentally sound following a period of slowed growth in 2025. Policymakers continue to view persistent inflation as the primary risk, having raised benchmark borrowing rates by a quarter percentage point earlier in September.
ADP data has been lagging behind official numbers lately. I’ll believe it when Friday’s report confirms it.
Financials and professional services losing jobs while healthcare grows says a lot about where the economy is heading.
Wage growth at 3.2% is still real, but with the Fed hiking rates, does this actually cool inflation?
56k jobs in the Northeast? That is a massive regional concentration. I wonder how the rest of the country fares.
Solid rebound from August’s disappointment. Hope Friday’s BLS data matches this momentum.