The U.S. economy added 230,000 private, non-farm jobs in September, according to the monthly employment report released today by payroll-management firm ADP and its partner Moody's Analytics. The seasonally adjusted result is a 38.5 percent increase from August's upwardly revised addition of 166,000 jobs, and marks a 173 percent increase from last September, when 84,000 jobs were created.
“The job market continues to power forward," said Moody’s Analytics chief economist Mark Zandi in a press release. "Employment gains are broad-based across industries and company sizes. At the current pace of job creation, unemployment will fall into the low 3 percent’s by this time next year”
Small businesses—firms that employ between one and 49 employees—gained 56,000 jobs in September. Within that group, firms that employ fewer than 20 people added 35,000 jobs, and firms with 20 to 49 employees created 21,000 new positions.
Mid-sized businesses—those with 50 to 499 employees—accounted for the largest share of employment gains by company size for the 11th consecutive month, with 99,000 positions added.
Large businesses, consisting of 500 employees or more, added 75,000 jobs. Within that figure, businesses employing 500 to 999 people gained 26,000 jobs, and companies with 1,000 or more employees added 49,000 positions.
“The labor market continues to impress,” said ADP Research Institute vice president and co-head Ahu Yildirmaz in the same press release. “Both the goods and services sectors soared. The professional and business services industry and construction served as key engines of growth. They added almost half of all new jobs this month.”
The service-providing sector, which has shown the strongest growth in the ADP's job report for 18 consecutive months, contributed 80 percent, or 184,000 jobs, of the total gains in September. This sector encompasses jobs in seven subsectors—professional and business services; trade/transportation/utilities; information; financial activities; education and health; leisure and hospitality; and other services. Six of the seven subsectors experienced employment gains during September, with a loss of 3,000 jobs in the information subsector as the only exception.
Employment in the professional and business services subsector, which includes architecture and engineering firms, increased by 70,000 jobs, a 100 percent increase from last month. This subsector accounted for 38 percent of all service-providing sector jobs added in September.
The goods-producing sector, which includes jobs in natural resources and mining, construction, and manufacturing, added 46,000 jobs in September. Within that figure, the construction subsector gained 34,000 jobs, or 74 percent of the total jobs added in the sector during September. The natural resources/mining subsector gained 5,000 jobs, while the manufacturing subsector added 7,000 new positions.
ADP's national employment report is often used as a precursor for the monthly Bureau of Labor Statistics jobs report, which will release its September edition on Friday.
For more information, read the full employment report from ADP.