Job Recovery Stalls as Private Sector Employment Declines in September

By Jessica Davis  |  Print this article Print

Job recovery hit a snag in September as the private sector's employment rolls fell by 39,000 indicating a "pause in the economic recovery."

The economic recovery has hit a snag, at least in terms of jobs. That’s according to the most recent ADP National Employment Report which showed that the private sector actually lost 39,000 jobs in September compared to August.

"Although some industry sectors are experiencing positive job growth, at this point in the recovery job creation remains surprisingly anemic, with no tangible evidence of acceleration," said Gary C. Butler, president and CEO of ADP, in a statement. 

"Consumers remain cautious about their spending which translates to lower demand for products and services.  Businesses need to see growing demand before they will increase hiring.  To support job creation, our nation’s policymakers need to do more to incentivize businesses to invest in expansion and to accelerate key tax and regulatory decisions that will reduce uncertainty across the economy."

Job losses were across the board according to company size, with small business shedding 14,000 jobs, medium business shedding another 14,000 and large business shedding 11,000. The goods-producing sector lost the most with 45,000 jobs lost while the service-providing sector showcased a small bright spot with a 6,000 job gain.  That marked the eighth consecutive monthly gain for the service sector. But services weren’t enough to lift the entire picture. Far from it.

"The decline in private employment in September confirms a pause in the economic recovery, already evident in other data," said Joel Prakken, chairman of Macroeconomic Advisers, LLC, in a statement. "A deceleration of employment occurred in all the major sectors shown in the ADP Report and for all sizes of payroll.  The September decline in employment followed seven monthly increases from February through August.  However, over those seven months, the average monthly gain in employment was an anemic 34,000.  There simply is no momentum in employment."


Jessica Davis covers the channel for eWeek and Channel Insider. Her technology journalism career began well before anyone heard of the World Wide Web and has included stints at Infoworld, Electronic News/EDN, and the Philadelphia Business Journal. Her work has also appeared on CNN and Forbes.com. She has covered hardware, software and networking, as well as the business side of technology. She has won several journalism awards, including a national ASBPE award for best staff-written column, and was named Marketing Computers hardest working tech journalist on their inaugural list of top tech journalists. Jessica can be reached at jessica.davis@ziffdavisenterprise.com