Private payrolls growth slowed to a level not seen in over three years, according to the latest ADP Employment Report.
- Private employers added just 99,000 jobs in August — a drop from July’s 111,000 and the weakest monthly gain since January 2021.
Top Employers: Education and health services led with 29,000 new jobs, followed by construction (+27,000) and other services (+20,000).
- On the flip side, professional and business services lost 16,000 jobs, while manufacturing and information saw declines of 8,000 and 4,000, respectively.
- The service sector added 72,000 jobs, while the goods-producing sector contributed 27,000.
Regional Hot Spots: The South remains the strongest region for job growth, with 55,000 new positions in August.
Wage gains remained flat for the month, with year-over-year increases of 4.8% for job-stayers and 7.3% for job-changers.
What They’re Saying: “The job market’s downward drift brought us to slower-than-normal hiring after two years of outsized growth,” said ADP’s chief economist, Nela Richardson. “The next indicator to watch is wage growth, which is stabilizing after a dramatic post-pandemic slowdown.”
Bottom Line: The slower pace of hiring could signal a cooling labor market, aligning with broader economic concerns over inflation and interest rate hikes. All eyes will be on wage growth as the next key indicator of labor market health.
