U.S. Private Sector Job Growth Slows More Than Expected In August

(RTTNews) - A report released by payroll processor ADP on Thursday showed private sector employment in the U.S. increased by less than expected in the month of August.

ADP said private sector employment rose by 54,000 jobs in August after jumping by an upwardly revised 106,000 jobs in July.

Economists had expected private sector employment to rise by 65,000 jobs compared to the addition of 104,000 jobs originally reported for the previous month.

"The year started with strong job growth, but that momentum has been whipsawed by uncertainty," said ADP chief economist Dr. Nela Richardson. "A variety of things could explain the hiring slowdown, including labor shortages, skittish consumers, and AI disruptions."

ADP noted the leisure and hospitality and construction sectors performed well despite a broader month-over-month slowdown in hiring.

The report also said pay gains were little changed in August, with year-over-year pay growth at 4.4 percent for job-stayers and at 7.1 percent for job-changers.

On Friday, the Labor Department is scheduled to release its more closely watched report on the employment situation in the month of August, which includes both public and private sector jobs.

Economists currently expect employment to increase by 75,000 jobs in August after rising by 73,000 jobs in July, while the unemployment rate is expected to inch up to 4.3 percent from 4.2 percent.