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Private Sector Hiring Still Dragging America's largest and smallest employers led continued modest job creation in September, with much of the private sector continuing to show a hesitancy to hire.

By Ray Hennessey Edited by Dan Bova

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America's largest and smallest employers led continued modest job creation in September, with much of the private sector continuing to show a hesitancy to hire.

Private-sector payrolls rose just 166,000 in September, well below the 180,000 economists expected from the ADP National Employment Report. It is yet another weak data point for the national employment situation, which has yet to recover even as some other economic figures have improved.

Any job growth was split between the nation's very biggest and very smallest companies. Small businesses, defined by ADP as those with fewer than 50 workers, reported a rise in payrolls of 74,000 in the month, buy 46,000 of those came from companies with fewer than 20 employees.

Related: Amazon to Hire 70,000 Seasonal Workers With Hopes of Converting Many Into Full-Timers

On the flip side, companies with north of 1,000 workers added 59,000 jobs – and unusually high number, given that small business has been the primary driver of payrolls in recent years.

In between, the job market remained flaccid. Medium-sized businesses, defined by ADP as those with between 50 and 499 employees, added just 28,000 jobs nationwide in September.

The service sector continued to drive most job growth, though construction and manufacturing saw modest gains. The financial sector saw job loss of 4,000 payrolls in September, which ADP suggested may be tied to talk of higher interest rates.

Typically, the ADP report is one of two key employment data points released during the first week of each month, but it won't be sharing the spotlight this time around. The Labor Department is not expected to release its monthly report on the federal employment situation because of the government shutdown.

Related: How to Jump From Startup to Startup Without Hurting Your Career

Ray Hennessey

Former Editorial Director at Entrepreneur Media

Ray Hennessey is the former editorial director of Entrepreneur.

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