Hiring by U.S. companies slowed more than expected in September, pointing to a labor market that is starting to cool in the face of higher interest rates, according to the ADP National Employment Report released Wednesday morning.
Companies added 89,000 jobs last month, below the 153,000 gain that economists surveyed by Refinitiv predicted. That is also much lower than the revised 180,000 increase recorded in August.
It marked the worst month for job creation since January 2021.
“We are seeing a steepening decline in jobs this month,” said Nela Richardson, ADP chief economist. “Additionally, we are seeing a steady decline in wages in the past 12 months.”
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The weaker-than-expected report comes in the wake of an aggressive tightening campaign by the Federal Reserve, which has hiked rates to the highest level since 2001.
This is a developing story. Please check back for updates.