U.S. Private Sector Adds 38,000 Jobs in August, Missing Expectations

Hiring by private-sector employers fell short of expectations in August, with payroll processor ADP reporting a gain of 38,000 jobs, Claire Boston reported for Yahoo Finance.

Job seekers attend a career fair in the United States as private-sector hiring slows in August.

Economists polled by Bloomberg had expected private employers to add 47,000 jobs. July’s job gains were revised upward to 46,000 from an initially reported 44,000. 

The education and health services sectors accounted for most of the new jobs, while manufacturing and professional and business services recorded declines.

ADP data showed that workers who changed jobs received a 4.7 percent year-over-year increase in base pay, while those who remained with their employers saw base wages rise 3 percent.

“Once-predictable wage growth has been overtaken by complexities of demographic change, persistent inflation, and AI’s effects on jobs,” ADP Chief Economist Nela Richardson said. 

The Labor Department is scheduled to release its separate August employment report on Friday.

Unlike the ADP report, which is based on payroll data from millions of private-sector employees, the government report is based on surveys of households and employers.

Economists expect the Labor Department report to show that the US economy added 55,000 jobs in August.