Private Payrolls Rise by 38,000 in August, Below Expectations
ADP reported that private U.S. companies added 38,000 jobs in August, below the revised July figure of 46,000 and under the expected estimate of 47,000. This marked the slowest monthly gain since January, signaling a broader slowdown in job creation. The majority of new hires came from education and health services (45,000), leisure and hospitality (16,000), and construction (12,000). In contrast, manufacturing lost 17,000 jobs, while professional and business services also saw a decline. The ADP report highlights that most job gains were concentrated in large firms with over 500 employees. Pay growth remained steady year-over-year: base pay rose by 3%, and gross pay increased by 4.4%. The data precedes the Bureau of Labor Statistics' nonfarm payrolls release, expected to show a modest rebound from July's decline.
Topics: ADP report employment job growth labor market slowdown