Hiring activity in the US private sector showed signs of improvement in September, as per the latest data released by payroll processor ADP. The report indicated that private sector employment increased by an estimated 143,000 jobs last month, surpassing economists' expectations of a 125,000-job gain. This growth marked a rebound from the previous month, which saw the addition of 103,000 jobs.
The positive trend in hiring was observed across various major industries, with the exception of the information sector, which experienced losses. Despite the uptick in hiring, wage gains continued to slow down in the evolving labor market. Annual pay growth for existing employees eased to 4.7% from 4.8%, while job-changers experienced a more significant decline to 6.6% from 7.3%.
Over the past year, job growth has notably decelerated, prompting close monitoring by the Federal Reserve to ensure the labor market remains stable. Chief economist at ADP, Nela Richardson, noted that the increase in hiring did not translate to a corresponding surge in pay growth last month. Typically, individuals switching jobs tend to see faster pay growth, but the premium over job-stayers narrowed to 1.9%, matching a low recorded earlier in the year.
