ADP report revealed that US private employment grew by 99k in August, falling short of the expected 150k. The job gains were spread unevenly across sectors, with goods-producing jobs rising by 27k and service-providing jobs adding 72k. Among establishment sizes, small businesses lost -9k jobs, while medium-sized companies added 68k, and large firms contributed 42k new positions.
Annual pay growth for workers staying in their jobs at 4.8% yoy and for job changers at 7.3% yoy, both unchanged from the previous month.
Nela Richardson, chief economist at ADP, commented, “The job market’s downward drift brought us to slower-than-normal hiring after two years of outsized growth.” She added that wage growth, which has begun to stabilize following a post-pandemic surge, will be the next key indicator to monitor.
