Employers added 568,000 jobs in September, according to a report by private payroll company ADP jobs released Wednesday. That number was better than expected 430,000, following 374,000 created in August. Large companies and the services sector were the most profitable, adding 390,000 and 466,000 jobs, respectively.
“The labor market recovery continues to make progress despite a marked slowdown from the 748,000 job pace in the second quarter,” ADP Chief Economist Nela Richardson said in a statement. “Leisure and hospitality remain one of the biggest beneficiaries to the recovery, yet hiring is still 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.”
The report was the first of three talks on labor market conditions this week and culminated on Friday with monthly employment statistics released by the Ministry of Labor.
According to official Labor Ministry statistics, the labor market has recently been uneven, creating 235,000 disappointing jobs in August. Economists predict a recovery in September, creating about 470,000 jobs, but some estimates are higher.
The continued presence of delta variants of the coronavirus delayed adoption as companies had to transfer restrictions such as social distance, masking, and vaccination. Meanwhile, companies are reporting problems filling about 11 million jobs. Due to the disruption of the global supply chain jobs, some companies are reducing rents.
“Among the other issues adding to uncertainty overall is the political bickering in Washington over suspending or boosting the federal debt ceiling,” Bankrate senior economic analyst Mark Hamrick said. “Inflation and political discord serve to undermine consumer and business confidence, with fading fiscal support from the federal government.”
“Beyond the horizon, further improvement in the economy and the job market are reasonable expectations over the coming year or so. As with so many storylines with the pandemic, it seems there are always a few unexpected, or even unprecedented, plot twists,” Hamrick added.
Source: U.S. News & World Report