Private U.S. companies added jobs at a slower-than-expected pace in August, with the labor market showing further signs of cooling, according to a report Wednesday from payrolls processor ADP.
Firms added 38,000 workers for the month, down from an upwardly revised 46,000 in July and below the Dow Jones consensus estimate of 47,000. That marked the smallest gain since January, ADP said, reflecting a broader slowdown in employment growth.
The bulk of job creation came from just a few sectors, while several others posted declines.
Sector breakdown
Education and health services led all categories, adding 45,000 positions, with health care at the forefront. Leisure and hospitality contributed 16,000 jobs, and construction rose by 12,000.
Outside those areas, growth was scarce. Manufacturing shed 17,000 jobs, professional and business services lost 16,000, and natural resources and mining, as well as trade, transportation and utilities, each declined by 5,000.
Large businesses were the primary source of hiring. Companies with 500 or more employees added 34,000 workers, while those with fewer than 50 employees saw a gain of just 3,000.
Pay growth steady
Wage gains held steady in August. ADP introduced a new feature this month that breaks down growth between base pay and gross pay — the latter including tips, commissions, bonuses and other earnings.
For job-stayers, base pay rose 3% from a year earlier, while gross pay increased 4.4%, both unchanged from July. For all workers, the respective increases were 3.2% and 4.7%.
The ADP figures serve as a precursor to the Labor Department’s more comprehensive nonfarm payrolls report, due out Friday. Economists expect that report to show a gain of 53,000 jobs in August, after a decline of 23,000 in July. The unemployment rate is forecast to hold at 4.1%.
Source: www.cnbc.com — https://www.cnbc.com/2026/09/02/private-payrolls-rose-by-38000-in-august-fewer-than-expected-adp-reports.html
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