US private sector adds fewer jobs than expected in August

5th Sep 2024 11:50

(Sharecast News) - Private sector employment in the US rose much less than expected in August, according to figures released on Thursday by ADP.

Employment increased by 99,000 from July, versus expectations for a 145,000 jump. Meanwhile, July's gain was revised to 111,000 from 122,000.

Small businesses with fewer than 50 employees shed 9,000 jobs, while medium businesses with between 50 and 499 employees added 68,000 jobs.

Large businesses with more than 500 employees created an additional 42,000 jobs.

The service sector added 72,000 jobs, while the goods-producing sector saw a 27,000 increase.

The data also showed that year-over-year pay gains were flat, remaining at 4.8% for job-stayers and 7.3% for job-changers.

Nela Richardson, chief economist at ADP, said: "The job market's downward drift brought us to slower-than-normal hiring after two years of outsized growth.

"The next indicator to watch is wage growth, which is stabilising after a dramatic post-pandemic slowdown."