US private sector employment unexpectedly falls in September - ADP

(Sharecast News) - Private sector employment in the US unexpectedly fell in September, according to figures released on Wednesday by ADP. Employment declined by 32,000 from August, versus expectations for a 45,000 increase. Meanwhile, the August figure was revised to show that 3,000 jobs were lost rather than 54,000 created.

Small businesses with fewer than 50 employees shed 40,000 jobs, while medium businesses with between 50 and 499 employees lost 20,000 jobs.

Large business with more than 500 employees added 33,000 jobs.

The service sector saw a 28,000 drop in jobs, while the goods-producing sector shed 3,000 jobs.

The data also showed that year-over-year pay growth for job-stayers was little changed in September at 4.5%. Pay gains for job-changers slowed to 6.6% from 7.1% in August, led by leisure and hospitality and financial activities.

Nela Richardson, chief economist at ADP, said: "Despite the strong economic growth we saw in the second quarter, this month's release further validates what we've been seeing in the labour market, that US employers have been cautious with hiring."