Private Sector Job Growth slowed sharply in September, Marking the Slowest Pace Since 2021
📈 Private Sector Job Growth slowed sharply in September, Marking the Slowest Pace Since 2021.
In September, U.S. companies added only 89,000 jobs, well below the expected 153,000 and a significant drop from August's revised 180,000. This reflects a slowing labor market, potentially impacted by rising interest rates. Despite this, the Federal Reserve is pursuing aggressive tightening policies, and wage growth remains at 5.9% annually. Job gains were prominent in the leisure and hospitality sector but offset by losses in other industries, with small businesses showing the most significant hiring increase and large businesses reducing employees. The official Labor Department report for September, due soon, is highly anticipated for a more comprehensive job market assessment, though historically, ADP numbers haven't closely matched official government counts.
On Friday, Federal Reserve officials breathed a sigh of relief as April’s job data revealed a cooling in wage growth and hiring rates that hark back to pre-COVID-19 days.