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ADP Reports August Private Payroll Growth Misses Expectations at 38,000
cnbc · 2026-09-02
ADP
Private sector hiring in the U.S. slowed significantly in August, with ADP reporting 38,000 new jobs, falling short of the anticipated 47,000 figure.
What Happened
Labor Market Deceleration: Private U.S. companies added only 38,000 jobs in August, marking the smallest monthly gain since January and signaling a broader cooling in the labor market. This figure fell below the Dow Jones consensus estimate of 47,000 and represented a decline from the upwardly revised 46,000 positions added in July.
Sector-Specific Employment Trends: Job growth was heavily concentrated in education and health services, which added 45,000 positions, while leisure, hospitality, and construction also saw modest gains. Conversely, manufacturing, professional services, and trade sectors reported notable job losses, highlighting an uneven recovery across different industries.
Business Size and Wage Dynamics: Large firms with 500 or more employees accounted for the vast majority of new hiring, contributing 34,000 of the total jobs added. Meanwhile, wage growth remained stable, with base pay for employees staying in their roles rising 3% year-over-year, unchanged from the previous month.
Economic Outlook and Upcoming Data: The ADP report serves as a key indicator ahead of the Bureau of Labor Statistics' nonfarm payrolls release scheduled for Friday. Analysts are watching these figures closely to gauge the health of the economy, with expectations set for a 53,000 increase in nonfarm payrolls and an unemployment rate holding steady at 4.1%.