ADP Reports Private Sector Gained 54,000 Jobs in August, Falling Short of Forecasts

ADP: Private Sector Job Growth Slows in August

Hiring Falls Short of Expectations

Private employers added 54,000 jobs in August, according to payroll processor ADP. The number missed economists’ forecasts of 65,000 new jobs and marked a significant decline from July’s revised total of 106,000.

“The year started with robust hiring, but momentum has been thrown off by uncertainty,” said Nela Richardson, ADP’s chief economist. She cited factors such as worker shortages, cautious consumer spending, and the influence of artificial intelligence as possible contributors to the slowdown.

Industries Driving Growth

Leisure and hospitality led the way, contributing 50,000 new jobs in August. Gains were also seen in:

• Construction (+16,000)

• Professional and business services (+15,000)

• Information (+7,000)

• Natural resources and mining (+4,000)

• Other services (+1,000)

Sectors With Job Losses

Some industries contracted during the month:

• Trade, transportation and utilities (-17,000)

• Education and health services (-12,000)

• Manufacturing (-7,000)

• Financial activities (-2,000)

Employment by Business Size

Hiring varied by company size:

• Large firms (500+ workers): +18,000 jobs

• Mid-sized businesses (50–499 workers): +25,000 jobs

• Small businesses (under 50 workers): +12,000 jobs                                                                                                                                               

Wages and Pay Trends

Wage growth was steady compared with July. Employees who stayed in their jobs saw pay increase 4.4% year over year, while those who changed roles experienced a larger 7.1% jump.

Jobless Claims Rise

Separately, the Labor Department reported that 237,000 Americans filed for unemployment benefits last week, above expectations of 230,000 and higher than the prior week’s 229,000.

Looking Ahead

The ADP figures arrive ahead of the U.S. government’s official nonfarm payrolls report, due Friday. Economists expect that release to show an increase of 75,000 jobs, slightly above July’s 73,000.