ADP: Private Sector Adds 166,000 Jobs In September

Falls Short Of Forecasts

September JobsBoosted by another round of gains in the services sector, businesses added 166,000 jobs in September, according to payroll processing firm ADP. The reported September gains fell short of consensus forecasts, though, providing further evidence that the job market has slowed in recent months amid renewed economic headwinds.

"Fiscal austerity has begun to take a toll on job creation," said Mark Zandi, chief economist of Moody's Analytics, which partners with ADP to produce a monthly report. "The run-up in interest rates may also be doing some damage to jobs in the financial services industry."

ADP reports small businesses added 74,000 jobs last month, while mid-size firms created 28,000 positions and larger companies increased their ranks by 64,000. Trade, transportation and utilities generated the largest job gains in September, with 54,000, followed by professional and business services which contributed 27,000 positions. Among poor performing sectors, manufacturers added just 1,000 jobs in September and financial companies actually cut 4,000.

The latest ADP numbers take on greater meaning than usual because the government shutdown will likely mean the Bureau of Labor Statistics (BLS) won't release its monthly employment report tomorrow. Investors have paid particularly close attention to the BLS report of late, as they try to determine when the Federal Reserve will reduce, or taper, its $85 billion per month of purchases of Treasuries and mortgage-backed bonds.

Government data shows monthly job growth has averaged about 150,000 positions over the past three months, a sharp decline when compared to the 224,000 average throughout Q2.