By Jason Bramwell
Small and medium-sized businesses (SMBs) accounted for 102,000 of the 166,000 jobs created from August to September; however, jobs for financial activities declined during that time frame, according to the latest national employment report from payroll services provider ADP.
The September 2013 ADP National Employment Report revealed that small businesses added 74,000 new jobs: those with between one and nineteen employees saw 46,000 new jobs, while companies with twenty to forty-nine employees gained 28,000 jobs. Medium-sized businesses with fifty to 499 employees added 28,000 jobs.
Large businesses saw 64,000 new jobs created: those with between 500 and 999 employees added 5,000 jobs, while large businesses with more than 1,000 workers gained 59,000 jobs.
Goods-producing employment rose by 19,000 jobs in September, a slight increase over its August growth rate. Construction payrolls added 16,000 jobs, while manufacturing payrolls increased by 1,000.
Service-providing industries added 147,000 jobs in September, down from 152,000 in August. Among service industries, the financial activities sector shed 4,000 jobs; however, employment for the professional/business services sector, which includes accounting, auditing, and tax preparation, rose by 27,000 jobs. The trade/transportation/utilities sector had the highest job gain at 54,000.
"The job market appears to have softened in recent months", Mark Zandi, chief economist of Moody's Analytics Inc., which compiles the data with ADP, said in a written statement. "Fiscal austerity has begun to take a toll on job creation. The run-up in interest rates may also be doing some damage to jobs in the financial services industry. While job growth has slowed, there remains a general resilience in the market. Job creation continues to be consistent with a slowly declining unemployment rate."
The US unemployment rate dropped from 7.4 percent in July to 7.3 percent in August, the lowest the rate has been since the 7.3 percent reported in December 2008, according to the Bureau of Labor Statistics.
About the report:
The ADP National Employment Report is a monthly measure of the change in total US nonfarm private employment derived from actual, anonymous payroll data of client companies served by ADP, a leading provider of human capital management solutions. The report, which measures nearly twenty-four million US workers, is produced by the ADP Research Institute, a specialized group within the company that provides insights around employment trends and workforce strategy, in collaboration with Moody's Analytics Inc.