ADP: Job Creation Up 58,000, Construction Falls
The estimated change in employment from July to August was revised down by 11,000 to 27,000.
This month’s ADP National Employment Report was the third consecutive weak reading and confirms the recent deceleration of employment.
In September, employment in the services sector of the economy grew a moderate 97,000, while employment in the goods-producing sector declined 39,000. This marks the tenth consecutive monthly decline in the goods-producing sector. Employment in the manufacturing sector declined 22,000.
Small- and medium-size businesses more than accounted for the increase in total employment in September, with employment among these businesses advancing by 84,000. In contrast, employment among large businesses fell by 26,000 in September, the fourth consecutive monthly decline.
Two sectors of the economy hit hardest by recent problems in mortgage markets have been residential construction and financial activities related to home sales and mortgage lending.
In September, employment in the construction sector fell 20,000, the 12th decline in thirteen months, bringing the cumulative decline since August of 2006 to 157,000. In addition, employment in the financial activities sector dropped 7,000 in September, the second consecutive monthly decline after nearly six years of uninterrupted growth.
The gains in employment at small- and medium-size businesses were concentrated in the service sector of the economy, which showed a gain of 109,000. However, employment among these same-size businesses in the good-producing sector fell 25,000.