Private payrolls in the United States increased by 568,000 in September, more than what was initially expected, according to the ADP National Employment Report. This increase comes amid a slowdown of COVID-19 infections, which has possibly allowed restaurants and other companies to once again hire. Previously, economists forecasted that private payrolls would only increase by 428,000 jobs.
This increase in private payrolls signals that more jobs were likely added in September, something that many economists are hopeful for. Thus far, data reveals that jobs in the leisure and hospitality industries saw the most gain, though more accurate data for the month will add more details to exactly which industries increased in hires. The monthly jobs report from the government will also help economists understand where the labor market stands, which hasn’t yet been released. Manufacturing jobs and hires at construction sites have also increased recently.
As private payrolls increase, many economists believe that the slowdown in COVID-19 infections has helped employers find new employees to hire. The nation has been stuck in a labor shortage which has hindered the performance of businesses, as well as kept the economy from truly growing as it could. For many, workers did not want to return to the workforce because of lingering COVID-19 concerns.
The Delta variant disrupted the progress the country was making in many regards, especially when it comes to the labor market’s recovery. Economists also believed that schools resuming in the fall would allow many parents to return to the workforce. Therefore, this increase in payrolls may signal that this theory is finally coming true.
August saw a real disappointment in job hiring after a summer of large hires. The Delta variant and lingering COVID-19 concerns are likely to blame for this slowdown in hires. Now that cases are slowing down and more Americans are becoming fully vaccinated, the labor market may finally work towards recovery and continue to allow the economy to grow.
This latest ADP report is conducted with Moody’s Analytics. While it isn’t 100% accurate — it’s more of a prediction — it did predict the August slowdown in job hires. The Labor Department’s monthly jobs report will give economists accurate data to look over, and this report is much more detailed about where the country and the labor department stand.
Thus far, all signs point to a labor market still in recovery, though in a positive way. Even the latest weekly jobless claims, while they did increase slightly, points in a positive direction. As long as Delta COVID-19 cases continue to drop and the pandemic once again subsides, it does appear as if the labor market will recover as hoped.
The economy was supposed to experience massive growth this year as a result of high consumer demand. However, the Delta variant changed things. For the past few months, the Delta variant has caused consumer confidence to drop, which has also resulted in a slowdown in the economy. If hires increase and the labor market recovers, this may also be a sign that other factors, such as consumer confidence, will also increase.
