US private-sector hiring rebounds in September with 90,000 jobs added

Thursday 01 - 10:25

By: Azzat Manal

US private-sector hiring rebounds in September with 90,000 jobs added

US private-sector employers added 90,000 jobs in September, marking a notable acceleration in hiring after several months of slower growth, according to the latest ADP National Employment Report. The increase exceeded economists’ expectations and represented a significant improvement from August, when private payrolls rose by a revised 36,000.

The September increase was stronger than the roughly 70,000 jobs economists surveyed by Reuters had expected. The figures suggest that private-sector hiring regained some momentum at the end of the third quarter, although the ADP report provides only one measure of employment conditions and is not designed to forecast the government's monthly jobs report.

ADP's data showed that employment gains were spread across several parts of the economy. Education and health services recorded the largest increase, while leisure and hospitality, manufacturing and construction also contributed to the monthly rise in private employment. The figures point to continued demand for workers in service industries alongside renewed hiring in several goods-producing sectors.

The improvement follows a period of softer private-sector hiring. August's revised gain of 36,000 jobs had represented one of the weakest monthly increases of the year, while ADP's latest figures indicate that employment growth strengthened considerably in September.

Wage growth also remained positive. ADP reported that base pay increased 3.2% year over year in September, while gross pay rose 4.7%. Among workers who remained in the same job, gross pay increased 4.4%, while workers who changed jobs recorded a 7.3% increase.

ADP Chief Economist Nela Richardson said the September figures pointed to a rebound in private-sector hiring following a period of slower growth. The data are based on anonymized payroll information covering more than 26 million private-sector employees in the United States.

The labor market nevertheless continues to show mixed signals. A separate Labor Department report found that US job openings fell by 256,000 in August to 7.079 million, while layoffs remained relatively low. The combination of fewer vacancies and limited layoffs suggests that employers have been cautious about expanding their workforces even as large-scale job losses remain contained.

Consumer sentiment has also weakened. The Conference Board's confidence index fell sharply in September to 81.9 from 88.6 in August, with respondents expressing greater concern about employment and business conditions. The contrast between improving private payroll growth and weaker confidence highlights the uneven signals emerging from the US economy.

The ADP figures arrive just before the release of the broader employment report from the US Bureau of Labor Statistics. Economists surveyed by Reuters expected nonfarm payrolls to increase by about 90,000 in September, with unemployment forecast to remain around 4.1%. The government report covers a broader section of the labor market than the ADP survey and is more closely watched by policymakers and financial markets.

Employment data are particularly important for the Federal Reserve as it weighs the balance between labor-market conditions and inflation. The central bank raised its benchmark interest rate to a range of 3.75% to 4.00% in September, while investors have been assessing whether additional increases will be needed as inflation remains above the Fed's 2% target.

The September ADP report therefore provides evidence of stronger private-sector hiring but does not, by itself, establish the direction of the wider labor market or future Federal Reserve policy. The government's employment figures, together with inflation, wages and other economic indicators, will provide a broader picture of the US economy as the final quarter of 2026 begins.