ADP Reports Slowest Private Job Growth Since January

U.S. private companies added 38,000 jobs in August, according to data released Wednesday by ADP. This figure represents the slowest pace of job growth since January and fell short of consensus estimates, which ranged from 47,000 to 48,000 positions. ADP also provided an upward revision for July, increasing the figure from 44,000 to 46,000 jobs.

Employment gains were concentrated in education and health services, which added 45,000 positions, as well as construction, leisure, and hospitality. Large companies with 500 or more employees drove most of the growth. In contrast, manufacturing lost 17,000 jobs, and professional and business services declined by 16,000.

Pay growth remained steady for employees staying in their roles, with base pay rising 3% and gross pay increasing 4.4% from a year ago. However, pay growth for job-changers slowed to 7.3%. The report serves as a precursor to the official nonfarm payrolls release from the Bureau of Labor Statistics scheduled for Friday.