Companies in the private sector added 38,000 jobs in August, payroll processing firm ADP said in its latest report on Wednesday.
The figure is below economists’ estimates of a gain of 48,000 jobs and down from the prior month’s revised 46,000 payrolls. August’s figure is the lowest since January.
“Pay can tell us a lot about today’s choppy hiring,” said Nela Richardson, ADP’s chief economist. “To understand hiring patterns, you have to look deeply into where pay growth is accelerating, where it’s slowing, and for whom. Once-predictable wage growth has been overtaken by the complexities of demographic change, persistent inflation, and AI’s effects on jobs.”
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Which industries are hiring the most workers, according to the ADP report?
Education and health services added 45,000 positions, leading job creation in August. Leisure and hospitality added 16,000, and financial activities and other services each gained 6,000.
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On the negative side, manufacturing lost 17,000 jobs and professional and business services lost 16,000.
Natural resources and mining, and trade, transportation each lost 5,000, while information lost 4,000 positions in the month.
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Large businesses – those with 500 or more employees – gained 34,000 jobs in August. Hiring for businesses with 50 to 499 employees was flat. Establishments with fewer than 50 employees gained 3,000 jobs.
People staying in their roles saw their pay climb 4.4% from the prior year, while pay gains for those changing their jobs accelerated to 7.3%.
The ADP data is released before the Labor Department’s nonfarm payrolls report, which is due on Friday morning and can differ notably. The government data is expected to show an increase of 56,000 positions, above the unexpected loss of 23,000 reported in July. The unemployment rate is expected to remain at 4.1%.
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