Companies in the private sector added 54,000 jobs in August, payroll processing firm ADP said Thursday.
The figure is below economists’ estimates of a gain of 65,000 jobs and down sharply from the prior month’s revised reading of 106,000.
“The year started with strong job growth, but that momentum has been whipsawed by uncertainty,” said Nela Richardson, ADP’s chief economist. “A variety of things could explain the hiring slowdown, including labor shortages, skittish consumers, and AI disruptions.”
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Leisure and hospitality added 50,000 positions, leading job creation in August. Construction added 16,000 jobs, professional and business services added 15,000 and information contributed 7,000.
Natural resources and mining added 4,000 positions while other services added 1,000 jobs.
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On the negative side, trade, transportation and utilities lost 17,000 jobs during the month, while education and health services lost 12,000 positions. Manufacturing lost 7,000 jobs and financial activities lost 2,000.
Large businesses – those with 500 or more employees – added 18,000 jobs in the month. Businesses with 50 to 499 employees hired 25,000 workers. Establishments with fewer than 50 employees added 12,000 jobs.
Wage growth in August was little changed from the prior month. People staying in their roles saw their pay climb 4.4% from the prior year, while those staying in their jobs saw a 7.1% increase.
Also on Thursday, the Labor Department released data on the number of Americans filing for unemployment benefits last week. Jobless claims rose to 237,000, above economists’ expectations of 230,000 and more than the prior month’s reading of 229,000.
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 75,000 positions, above the 73,000 reported in July.
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