September Private Sector Jobs Rebound After Three Months of Slowing Growth, ADP Says

11:28 AM EDT, 09/30/2026 (MT Newswires) -- US private sector employment rebounded in September as payrolls expanded at a faster pace following three months of slowing growth, ADP (ADP) data showed Wednesday. Private jobs grew by 90,000 in September, after a revised gain of 36,000 in August, payrolls processing firm ADP said. The consensus was for a 75,000 increase in a Bloomberg-compiled survey. "Employment gains in the September ADP employment report help underscore the strength of the labor market and will bolster market expectations for firmer monetary policy from the Federal Reserve as it seeks to ensure inflation is tamped out," Oxford Economics Senior Economist Matthew Martin said in a note. The hawkish tone aligns with recent commentary from multiple Federal Reserve officials signaling the need for tighter monetary policy amid persistent price pressures. The calls follow a 25 basis point increase in key rates by the central bank earlier in September, the first in just over three years. The Federal Open Market Committee signaled another hike later this year as the Federal Reserve seeks to bring inflation down to its 2% target. Markets are currently pricing in a 35% probability that the Fed will lift interest rates again by 25 basis points next month, according to the CME FedWatch tool. The remaining odds point to a pause. The services sector added 59,000 jobs last month, led by a 55,000 increase in education and health services, ADP said. The goods-producing sector saw employment increase by 31,000 jobs. The Bureau of Labor Statistics is scheduled to report the September nonfarm jobs report Friday. That report is likely to show the US economy added 90,000 jobs this month, according to a Bloomberg-compiled survey. Earlier this month, official data showed an addition of 162,000 nonfarm jobs in August, almost triple the tally expected by Wall Street at the time. Gross pay growth was up 4.7% year over year in September, with a 4.4% increase for job stayers and a 7.3% gain for job changers, ADP said. Gross pay measures total compensation generated by labor market activity, a data set that can be used to assess income growth and consumer spending power, according to ADP. "It's a strong report," ADP Chief Economist Nela Richardson said. "After a three-month slowdown, job creation rebounded and pay growth remained solid." The gain in private jobs keeps the three-month moving average consistent with estimates for the breakeven pace of monthly employment growth, Martin said. "Therefore, we don't think the report marks the start of tightening in the labor market, but it does underscore the stability even amid a time of economic uncertainty." US job openings fell in August amid a sharp decline in professional and business services, official data showed Tuesday. Price: 264.19, Change: +2.38, Percent Change: +0.91