MNI BRIEF: US Hiring Momentum Slowing Through September - ADP

U.S. private sector employment fell 32,000 in September as the labor market continued its cooling trend from the start of the year, ADP chief economist Nela Richardson said Wednesday. An annual re-benchmarking of the data to the Labor Department's QCEW report reduced job growth by 43,000. 

"Once we benchmarked, that data actually shows a September slowdown that has been consistent with what we've been reporting all year. In fact, though the numbers change, the story and the narrative and the trend remain the same: hiring momentum has slowed from the beginning of the year through September," she said. 

Still the labor market remains stable in her view, and wage growth at 4.5% for job stayers and 6.6% for job changers signal "still some tightness," Richardson said. Consumer spending is driving growth, but a widening differential between top and bottom earners has seen lower income workers' wage growth fall 1.8pp this year, which will translate to spending. "If we get broad-based consumer spending and clarity in terms of policy, I do think that the elements of the economy are there to have persistent and steady job growth." (See MNI INTERVIEW: Fed Right To Remain Cautious On Rate Cuts-Kohn)