Only 135,000 private-sector jobs were created in September, according to Automatic Data Processing Inc. (ADP) showing the continued slowing down of US hiring.
US businesses are being more cautious when it comes to hiring says ADP, which is a worldwide business outsourcing services provider founded in 1949 with headquarters located in Roseland, N.J. The paychecks for millions of US workers employed by thousands of US companies is processed by ADP which has over 600,000 clients worldwide.
Economists had previously forecasted a gain of 152,000 private-sector jobs but the 135,000 figure turned out to be only a modest gain indicating that hiring is slowing down along with the sluggish US economy.
The ADP has also reduced its estimation for new jobs to be created in August to 157,000 down from its original estimate of 195,000.
According to ADP’s numbers 67,000 jobs were added by large companies, while 39,000 new workers were hired by mid-sized businesses and 30,000 positions were filled by small businesses.
At Moody Analytics, an economic research company founded in 2007, its chief economist, Mark Zandi, says that businesses are being more cautious in their hiring, and small businesses especially have become very hesitant and if this continues the unemployment figures will rise.
With an aging population created by baby boomers, the new jobs being created is being led by the healthcare industry with 35,000. More doctors and caregivers are needed for the increasing aging population,
Other industry sectors that created new jobs are from the trade and transportation areas which increased by 28,000 and the business and professional services which hired 20,000 people. Following behind are construction firms with 9,000 jobs while job employment in the manufacturing sector barely rose.
Both the ADP’s and Moody Analytics’ reports help in the evaluation regarding the health of the US labor market. Although figures can vary widely from month to month, the ADP’s employment figures track the governments official jobs estimates.
The government will come out with its own report this Friday which will include government workers. Economists who were polled by MarketWatch predict the report will show a 147,000 increase in jobs.
The ongoing trade war between the US and China is a source for the continued slowing down of job creations predicted by economists. Since the end of 2018, hiring has tapered off with some reduction in employment by some companies which is the first time to happen in several years. These job cuts though of American workers have not yet shown up in the weekly figures for unemployment benefits application.
The US-China trade war has backfired and US manufacturers and exporters have been the ones to be the hardest hit.