MNI BRIEF: Sharp Slowdown In ADP Should Be Eyed With Caution

ADP chief economist Nela Richardson said Wednesday a sharp slowdown in hiring in the September ADP National Employment Report should be eyed with caution and job growth could rebound next month.

Private firm hiring last month at 89,000 was the slowest pace of growth since January 2021. Large firms have pulled back this year, recording a -83,000 change in jobs last month, while hiring for small firm especially those in leisure and hospitality has been consistently strong, adding 95,000 jobs in September.

"It's too soon to call that slowdown indicative of a recession," she told reporters on a call. (See: MNI INTERVIEW: Fed's Fujita Sees Signs of Jobs Soft Landing) Pay growth for job changers has finally dipped into single digits after a number of months, falling to 9.0% last month from 9.7% in August. Job stayers saw a median change in annual pay of 5.9%. Both measures peaked last year.