Companies added 568,000 jobs in September, according to a monthly report released Wednesday by payroll processing firm ADP.
Economists were expecting job growth to reach 425,000 in September, according to CNBC.
ADP Chief Economist Nela Richardson said the labor market recovery is continuing to make progress despite having a slowdown in the second quarter.
The leisure and hospitality sectors led job creation with 226,000 new hires after being hit hard during the ongoing pandemic and struggling to regain traction after the economic reopening.
Hotel-based companies and larger chains with 500 or more employees have created 390,000 new jobs, while businesses with 50 or fewer employees added 63,000 jobs and medium-sized companies added 115,000 new jobs, according to the report.
Service-based companies contributed 466,000 new jobs with education and health services adding 66,000 new jobs, professional and business services creating 61,000 new jobs, and trade, transportation and utility businesses adding 54,000 new jobs, the report said.
The report comes amid concerns about the continuing spread of the highly contagious delta variant and fears about the economic growth slowing down heading into the fall season, CNBC reported.
According to data from the Centers for Disease Control and Prevention, the U.S. averaged 97,909 new coronavirus cases on a seven-day span through Monday.