ADP Automatic Data Processing Inc

By Maria Martinez

Job creation in the U.S. private sector rose in September compared with the previous month, as the labor market recovery continues but at a slower pace than in previous months.

The U.S. nonfarm private employment increased by 568,000 in September, data from ADP National Employment Report showed Wednesday, beating the 425,000 rise expected by economists polled by The Wall Street Journal.

In August, the U.S. private sector added 340,000 jobs, less than the 374,000 jobs of the initial estimate.

"The labor market recovery continues to make progress despite a marked slowdown from the 748,000 job pace in the second quarter," said Nela Richardson, chief economist at ADP.

Medium-sized businesses, between 50 and 499 employees, added 115,000 jobs in September. Large businesses, those of at least 500 workers, created 390,000 jobs; and small businesses, with a maximum of 49 employees, registered 63,000 payroll gains.

By sector, 466,000 jobs were created among services providers. Among those, 226,000 were added in the leisure and hospitality sector.

"Leisure and hospitality remains one of the biggest beneficiaries to the recovery, yet hiring is still heavily impacted by the trajectory of the pandemic, especially for small firms," Ms. Richardson said.

Jobs in the goods-producing sector were up by 102,000, with 46,000 in construction, 7,000 in natural resources and mining, and 49,000 in manufacturing, ADP said.

"Current bottlenecks in hiring should fade as the health conditions tied to the Covid-19 variant continue to improve, setting the stage for solid job gains in the coming months," Ms. Richardson said.

The report, carried out by the ADP Research Institute along with Moody's Analytics, is based on data through the 12th of the month.

The U.S. Department of Labor is expected to release its employment report for September, which covers the same period as the ADP National Employment Report, on Friday. Economists polled by The Wall Street Journal are expecting it to show nonfarm payrolls up by 500,000 for the month and the unemployment rate down to 5.1% from 5.2% the previous month. The ADP series can diverge considerably from the Labor Department's data on a monthly basis.

Write to Maria Martinez at maria.martinez@wsj.com

(END) Dow Jones Newswires

October 06, 2021 08:53 ET (12:53 GMT)

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