After a strong rebound in July, private sector job growth cooled in August, with just 54,000 jobs added, according to ADP. That’s well below the 75,000 expected and nearly half of July’s 106,000 gain.
Mid-sized businesses (50-499 employees) led hiring with 25,000 new jobs, while small businesses added 12,000. Large companies, which had previously driven growth, slowed considerably with just 18,000 new positions.
Workers who stayed in their jobs saw annual pay increases of 4.4%, while those who switched roles continued to see stronger growth at 7.1%.
What’s the bottom line?
Job growth is clearly losing steam. Over the past three months, the average has fallen to just 46,000 new jobs per month – down from 62,000 over the last six months and well below the 120,000 monthly average from the past year.
ADP Chief Economist Dr. Nela Richardson explained, “The year started with strong job growth, but that momentum has been whipsawed by uncertainty. A variety of things could explain the hiring slowdown, including labor shortages, skittish consumers, and AI disruptions.”
