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ADP Report: Private Payrolls Grow by 568,000 in September

  • ADP report shows private payroll job creation of 568,000 positions in September
  • 63,000 positions created at companies with fewer than 50 employees
  • Leisure and hospitality leads job creation, followed by education and health services and professional and business services

Summary by Dirk Langeveld

Job creation in the private sector strengthened in September with 568,000 new non-farm private payroll positions, according to the payroll services provider ADP. The increase follows a more modest gain of 374,000 jobs in August as the COVID-19 Delta variant slowed hiring.

The monthly update by ADP Research Institute in conjunction with Moody’s Analytics shows 390,000 new jobs at businesses with 500 or more employees, 115,000 at mid-sized companies with a payroll of 50 to 499 employees, and 63,000 jobs at companies with fewer than 50 employees. A total of 466,000 jobs were in service-providing sectors, while 102,000 were in goods-producing sectors.

Leisure and hospitality continued to lead job creation, with 226,000 new positions. Other sectors with significant job growth included education and health services (66,000), professional and business services (61,000), and trade, transportation, and utilities (54,000).

“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. “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. 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.”

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