Large companies are the main cause of slowing private job creation, according to the study. (Photo: Getty Images)
Washington — Private sector job creation in the United States continued to slow in September, with 89,000 new jobs created, almost half as many as in August and well below expectations, according to the monthly ADP/Stanford Lab survey published Wednesday.
This is the lowest rate of growth observed since January 2021 and it marks an “increasing slowdown”, which is accompanied by a “marked decline in the rate of growth of wages over the last twelve months”, according to the head ADP economist Nela Richardson, quoted in the press release.
Analysts had anticipated a drop in the rate of job creation, but less marked, instead anticipating 150,000, according to the consensus published by briefing.com.
The figures for the month of August, however, were revised slightly upwards, with 180,000 private job creations compared to 177.00 initially announced.
A sign of the easing of the labor market, the increase in wages remained stable in September, according to the study data, at 5.9% over one year for employees who kept their jobs, i.e. the level already observed in August, thus equaling the lowest growth observed since October 2021.
For employees who have changed jobs, the increase is now 9% over one year, down compared to the previous month (9.5%).
“Overall, the growth in job creation remains positive, but the pace should continue to slow down due to the delayed and cumulative effect of monetary policy,” said HFE chief economist Rubeela in a note. Farooqi.
His counterpart at Pantheon Macroeconomics, Ian Shepherdson, for his part estimated that total job creation for the month of September, including public employment, should be 175,000, thus maintaining his forecasts.
Large companies are the main cause of the slowdown in the creation of private jobs, since they have eliminated 83,000, “wiping out the gains made in August”, underlines the study.
Since the post-COVID recovery, the country has been faced with a labor shortage in a certain number of sectors which has led to a sharp increase in wages, with the risk of seeing them fuel inflation.
But in recent months, relaxation has been widely observed, even if the pace of creation remains positive and unemployment is historically low, at 3.8% in August.
Data for September will be published on Friday and are expected to be almost stable, or slightly decreasing.
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2023-10-04 17:00:57
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