US private-sector hiring slowed sharply in August even as wage growth remained firm, according to data released by payroll processor ADP on Sept. 2. Private payrolls grew by 38,000, below the consensus estimate of 47,000, while base pay rose 3.2% year over year and gross pay was up 4.7%.
The August increase was the slowest pace of private-sector job growth since January. ADP's July figure was upwardly revised to 46,000.
The report was produced by ADP in collaboration with the Stanford Digital Economy Lab. It points to weaker momentum in private-sector job creation, though the data do not establish whether the slowdown reflects temporary factors or a sustained shift in hiring behaviour.
Education and health services led August's payroll gains, adding 45,000 jobs. Leisure and hospitality added 16,000 jobs, construction added 12,000, and financial activities added 6,000.
Large companies with 500 or more employees expanded payrolls by 34,000 in August. The report showed base pay rising 3.2% year over year for all private-sector workers in the United States, while gross pay increased 4.7%.
The ADP figures provide one measure of private-sector employment. The brief does not indicate how closely the August reading will correspond with forthcoming official Bureau of Labor Statistics employment data.
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