ADP National Employment Report: Private Sector Employment Increased by 568,000 Jobs in September

Private sector employment increased by 568,000 jobs from August to September according to the September ADP National Employment Report.  Broadly distributed to the public each month, free of charge, the ADP National Employment Report is produced by the ADP Research Institute in collaboration with Moody’s Analytics. The report, which is derived from ADP’s actual data of those who are on a company’s payroll, measures the change in total nonfarm private employment each month on a seasonally-adjusted basis.

Chart 1. Change in Total Nonfarm Private Employment

Total U.S. Nonfarm Private Employment:     568,000

By Company Size

– Small businesses:     63,000

  • 1-19 employees     20,000
  • 20-49 employees     43,000

– Medium businesses:     115,000

  • 50-499 employees     115,000

– Large businesses:     390,000

  • 500-999 employees     36,000
  • 1,000+ employees     354,000

By Sector

– Goods-producing:     102,000

  • Natural resources/mining     7,000
  • Construction     46,000
  • Manufacturing     49,000

– Service-providing:     466,000

  • Trade/transportation/utilities     54,000
  • Information     11,000
  • Financial activities     22,000
  • Professional/business services     61,000
    – Professional/technical services     35,000
    – Management of companies/enterprises     3,000
    – Administrative/support services     24,000
  • Education/health services     66,000
    – Health care/social assistance     43,000
    – Education     22,000
  • Leisure/hospitality     226,000
  • Other services     28,000

* Sum of components may not equal total, due to rounding.

– Franchise Employment**

  • Franchise jobs     25,800

**Complete details on franchise employment can be found here.

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“The labor market recovery continues to make progress despite a marked slowdown from the 748,000 job pace in the second quarter,” said Nela Richardson, chief economist, ADP. “Leisure and hospitality remains one of the biggest beneficiaries to the recovery, yet hiring is still heavily impacted by the trajectory of the pandemic, especially for small firms. Current bottlenecks in hiring should fade as the health conditions tied to the COVID-19 variant continue to improve, setting the stage for solid job gains in the coming months.”

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The matched sample used to develop the ADP National Employment Report was derived from ADP payroll data, which represents 460,000 U.S. clients employing nearly 26 million workers in the U.S. The August total of jobs added was revised from 374,000 to 340,000.

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