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US private sector businesses added 749K workers in September: ADP

US private sector businesses added 749K workers in September: ADP
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U.S. nonfarm businesses added a seasonally adjusted 749,000 workers in September, according to the ADP National Employment Report released Wednesday.

The report from payroll processor ADP and Moody’s Analytics showed private sector businesses continuing to recover jobs lost to the onset of the coronavirus pandemic in March. The ADP estimate comes two days before the Labor Department is set to release the federal monthly jobs report, which also includes public sector employment.

“The labor market continues to recover gradually,” said Ahu Yildirmaz, vice president and co-head of the ADP Research Institute. “In September, the majority of sectors and company sizes experienced gains with trade, transportation and utilities; and manufacturing leading the way. However, small businesses continued to demonstrate slower growth.”

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Large businesses led September’s job gains as firms with more than 1,000 employees added 222,000 workers and firms with between 500 and 999 employees added 75,000 workers. Firms with between 50 and 499 employees added 259,000 workers, and firms with between 1 and 49 employees added just 192,000 workers.

Small businesses have struggled mightily throughout the pandemic as the persistence of the coronavirus prevents the economy from fully reopening. Smaller firms typically lack the savings and access to credit enjoyed by larger businesses and often run on much thinner profit margins.

Democrats and Republicans have both called for increasing aid to small businesses, particularly in the hard-hit leisure, entertainment, dining and hospitality industries, in another coronavirus stimulus bill. While both parties have narrowed the difference between their proposals, they remain nearly $1 trillion apart with less than six weeks until Election Day.