New Private Data Points to Softening Jobs Market

Payrolls at US companies unexpectedly dropped in September, according to ADP Research data released Wednesday. While part of that was due to an adjustment related to government numbers it relies on, the company said the data continues to support an underlying softening trend. Other recent sources generally point to anemic job growth, less appetite for hiring, few firings and modest wage gains.

“This month’s release further validates what we’ve been seeing in the labor market, that US employers have been cautious with hiring,” said Nela Richardson, chief economist at ADP. The report, published in collaboration with the Stanford Digital Economy Lab, showed wage growth continued to gradually soften. Workers who changed jobs saw a 6.6% increase in pay, the lowest in a year. Those who stayed put saw a 4.5% gain, little changed from the prior month.