Business & Finance
US private payroll growth slowed to 38,000 in August, ADP reports
August marked the weakest monthly employment gain since January, falling short of analyst expectations.
The short version
- U.S. private employers added 38,000 jobs in August, missing consensus forecasts and down from July's revised gain of 46,000.
- Hiring was concentrated primarily in large firms and sectors such as education, health services, leisure, and construction, while manufacturing and professional services shed jobs.
- The official U.S. government nonfarm payroll report is scheduled for release on Friday, which will provide broader labor market data.
Key facts
- ADP reported that private employers created 38,000 jobs in August, trailing the Dow Jones consensus estimate of 47,000.[CNBC]
- The monthly increase was the smallest since January and followed an upwardly revised total of 46,000 jobs added in July.[CNBC]
- Job gains were led by education and health services (+45,000), leisure and hospitality (+16,000), and construction (+12,000), whereas manufacturing (-17,000) and professional and business services (-16,000) declined.[CNBC]
- Firms with 500 or more employees accounted for 34,000 of the net additions, while small businesses with under 50 workers added 3,000.[CNBC]
- Year-over-year base pay growth for workers remaining in their roles remained steady at 3.0%, while gross pay rose 4.4%.[CNBC]
What remains uncertain
- Whether the slowdown captured by ADP will be corroborated by the Bureau of Labor Statistics' official nonfarm payrolls and unemployment data on Friday.[CNBC]