Soft job gain, treasury yield response as lines get drawn

ADP said a net 89k private sector jobs were created in September, below the estimate of 150k and after a 180k job gain in August. The service sector contributed 81k of the 89k jobs with the goods side making up the balance. That service figure is about half the job creation seen in August. Big companies, those with more than 500 employees, shed 83k jobs, offset by gains for small and medium sized businesses.

In terms of job breakdowns, all the service sector jobs and then some came from the leisure/hospitality sector as it added 92k. A drag was the fall in professional/business services of 32k (remember, in yesterday’s August JOLTS report it was this category that saw the biggest increase in job openings) and in trade/transportation/utilities. Financial services added 17k and education/health contributed 10k. As for ‘information’ which includes tech, this sector added 1k.