The nonfarm private sector added 38,000 jobs in August, and annual pay was up 4.7% year-over-year, according to the ADP National Employment Report. This follows an upwardly revised July report of 46,000 from 44,000.
Small businesses with fewer than 50 added 3,000 jobs. Medium-sized businesses with 50–499 employees did not add any jobs, while large businesses gained 34,000 jobs.
“Pay can tell us a lot about today’s choppy hiring. To understand hiring patterns, you have to look deeply into where pay growth is accelerating, where it’s slowing, and for whom,” said Dr. Nela Richardson, chief economist, ADP. “Once predictable wage growth has been overtaken by complexities of demographic change, persistent inflation, and AI’s effects on jobs,” Richardson said. “Our new Pay Insights report, with its enhanced data, can more fully reveal the dynamics of today’s labor market.”
Service-providing employment added 48,000 jobs, driven by education/health services gaining 45,000 jobs, followed by education and health services adding 16,000 and financial activities and other services both adding 6,000.
Goods-producing employment lost 10,000 jobs. Manufacturing and natural resources & mining lost 17,000 and 5,000 jobs respectively while construction added 12,000.
Read the ADP report.
