WASHINGTON, DC — Private employers added 90,000 jobs in September, a rebound that followed three months of slower private-sector hiring and came in better than many economists expected.
ADP’s monthly tally pointed to renewed momentum in the labor market, with more than half of the gains coming in education and health services. Leisure and hospitality also posted solid growth, adding 22,000 jobs, while financial services and professional and business services were weaker.
The numbers offered a mixed picture: more hiring than in recent months, but not broad strength across every major industry.
Wages rose, but still lagged inflation
ADP said median base pay increased 3.2% over the 12 months ending in September. That was steady, but still below the inflation rate reported by the Department of Commerce, which was unchanged in August at 3.4%.
For job seekers, the labor market remained fairly stable. For employers, especially those looking for specialized labor, the picture looked much tighter.
The wage data suggested that pay growth continued, but not quickly enough to outpace rising prices. That left workers and companies facing a market that was improving, yet still far from easy.
Ford's Jim Farley calls skilled trades shortage a crisis
Ford CEO Jim Farley said the shortage of skilled trades workers in the United States had reached crisis levels. He said there are 1.7 million open skilled trades jobs and argued that action is needed to address the gap.
His comments reflected a challenge that goes beyond one company. Manufacturers and other employers that depend on technicians, mechanics, and other hands-on workers have long said the supply of trained labor has not kept up with demand.
Farley’s warning came as the broader labor market continued to add jobs, underscoring that some sectors are hiring more easily than others.
New coalition says training pipelines are not keeping up
The Alliance for America’s Skilled Trades, a coalition that includes Ford, Google, Carhartt and BlackRock, released a report Wednesday projecting that 1.7 million skilled trades jobs will open each year through 2035.
The coalition said current training programs produce only 55 workers for every 100 needed. It warned that the problem could grow worse as the workforce ages, noting that one-fourth of current skilled trades workers are 55 or older.
The report framed the labor gap as both a hiring problem and a long-term pipeline problem. Even as employers need more trained workers, the supply of new entrants is not keeping pace.
Solar and wind jobs are projected to grow fastest
Of the 124 skilled trades occupations reviewed in the report, solar panel installers and wind turbine service technicians were expected to see the fastest growth over the next nine years.
The report projected those jobs would increase by 36% and 30%, respectively. That growth points to continued demand in energy-related fields, alongside the broader need for technical workers in traditional trades.
The findings also suggested that the country’s labor shortage is not limited to one industry. It spans a range of occupations that require specialized training and experience.
Stronger GDP data and a trade gap shape the economic backdrop
On the same day, an updated reading of second-quarter gross domestic product showed the economy grew at a 2.2% annual rate, stronger than the earlier estimate of 1.5%.
Economists said the figure would likely have been even higher if not for a widening trade deficit. The Census Bureau said the United States imported $132 billion more in goods than it exported in August.
The data arrived amid wider debate over the health of the economy, with tariffs and trade flows still influencing how growth is measured and interpreted.
Friday's jobs report will add more clues
The next major read on the labor market comes Friday, when the Department of Labor releases September’s full jobs report. That report will combine public- and private-sector figures and will be watched closely for signs that the rebound continued.
According to the Dow Jones consensus forecast, the economy is expected to have added 84,000 jobs and the unemployment rate is projected to hold at 4.1%. Analysts also expect wage data to be unchanged, with average hourly earnings rising 0.3% for the month and 3.1% over the year.
The release will help show whether September’s improvement was a one-month bounce or part of a broader trend.