Private sector employment in the U.S. saw a notable increase in September, as reported by payroll processor ADP on Wednesday.
According to ADP, private sector employment rose by 143,000 jobs in September, following an upwardly revised increase of 103,000 jobs in August.
Economists had projected a growth of 120,000 jobs in the private sector, compared to the initially reported addition of 99,000 jobs for the previous month.
The widespread rebound in job creation occurred after a five-month slowdown, with the information sector being the only one to experience job losses. Notably, the manufacturing sector added jobs for the first time since April.
The report also noted a slight decrease in year-over-year pay growth for employees who remained with their employers, showing a 4.7 percent increase in September. Pay growth for employees who changed jobs saw a more significant drop, falling to 6.6 percent in September from 7.3 percent in August.
"Stronger hiring didn’t necessitate stronger pay growth last month," stated ADP chief economist Nela Richardson. "Typically, workers who switch jobs observe faster pay growth, but their advantage over those who stay in their jobs diminished to 1.9 percent, matching a low last seen in January."
The Labor Department is scheduled to release its more comprehensive employment report for September on Friday, which will encompass both public and private sector jobs.
Economists anticipate this report will show a rise of 140,000 jobs in September, following an increase of 142,000 jobs in August, while the unemployment rate is expected to remain steady at 4.2 percent.
