The latest ADP National Employment Report shows a much smaller job increase for the private sector in August, with the addition of just 99,000 jobs. This is down from the 122,000 jobs reportedly added in July.
The education/health services (+29,000) and construction (+27,000) industries led job growth in August. Meanwhile, professional/business services (-16,000) and manufacturing (-8,000) lost jobs over the month. By establishment size, job changes ranged from -12,000 (20-49 employees) to +42,000 (500+ employees).
“The job market’s downward drift brought us to slower-than-normal hiring after two years of outsized growth,” said Nela Richardson, ADP’s chief economist. “The next indicator to watch is wage growth, which is stabilizing after a dramatic post-pandemic slowdown.”
Following steady declines, year-over-year pay growth held at 4.8% for job-stayers and 7.3% for job-changers in August.
