The private sector added 177,000 jobs in August, according to ADP’s National Employment Report. That’s down from 324,000 jobs in July.
“This month’s numbers are consistent with the pace of job creation before the pandemic,” Nela Richardson, ADP’s chief economist, said in a press release. “After two years of exceptional gains tied to the recovery, we’re moving toward more sustainable growth in pay and employment as the economic effects of the pandemic recede.”
The goods-producing sector added 23,000 jobs, while the service sector added 154,000. Most of the gains were in education and health services (+52,000) and trade, transportation, and utilities (+45,000). The month-over-month reduction was due largely to slower growth in the leisure and hospitality market. In July, the sector added 201,000 jobs, but only 30,000 in August.
The South added the most jobs regionally over the month (+119,000), though that number doesn’t make up for the 144,000 loss in July. Large companies (500+ employees) also reversed their pattern, adding 83,000 jobs in August, compared to losing 67,000 the month before.
Annual pay was up 5.9% for job stayers and 9.5% for job changers. Both numbers are lower than last month (6.2% and 10.2%, respectively). ADP notes that all 50 states plus Washington, D.C., saw a slowdown in pay growth for the first time.
