September’s hiring rebound comes with a warning on retention

Part of the reason is that pay practices rarely change. Most employers review pay once a year. When inflation topped 7% in 2022, many kept giving the kind of raises built for low-inflation years, Richardson explained in an ADP Research post.

“Workers care less about the direction of inflation and more about the size of their paychecks,” she wrote. “Many still feel like they’ve fallen behind.”

Where the jobs came from

Education and health services led again, adding 55,000 jobs, or about six of every 10 created in September. Leisure and hospitality added 22,000, manufacturing 17,000 and construction 15,000. Financial activities lost 16,000 jobs and professional and business services lost 11,000. Trade, transportation and utilities didn’t move.

Most of the growth happened in one region. The Northeast added 56,000 jobs, 47,000 of them in the Mid-Atlantic states. The South Atlantic and East North Central regions each lost 10,000.

Mid-sized employers did the most hiring. Establishments with 250 to 499 employees added 36,000 jobs. Those with 500 or more added 14,000.