Job Growth Slowed in August Amid Continued Uncertainty

Private sector job growth slowed in August, while the rate of pay gains was little changed, ADP said Thursday (Sept. 4).

The private sector added 54,000 jobs during the month, a figure that was down from the revised total of 106,000 added in July, the human resources (HR) and payroll solution provider said in a Thursday press release.

Year-over-year pay growth was little changed in August, with job-stayers gaining 4.4% and job-changers picking up 7.1%, according to the release. In August 2024, those figures were 4.8% and 7.1%, per the August ADP Pay Insights.

“The year started with strong job growth, but that momentum has been whipsawed by uncertainty,” ADP Chief Economist Nela Richardson said in the release. “A variety of things could explain the hiring slowdown, including labor shortages, skittish consumers and AI disruptions.”

The Bureau of Labor Statistics’ July Job Openings and Labor Turnover (JOLTS) report, which was released Wednesday (Sept. 3), showed little change compared to the previous month.

Job openings stood at 7.2 million, nearly 200,000 fewer than in June, more than 500,000 fewer than in May, and down over 300,000 from the same period last year. Private sector job openings decreased by 138,000.

The Conference Board reported Aug. 26 that consumer confidence slipped in August, in part because individuals said their job prospects dimmed.

The organization said job-related concerns rose during the month, although they remained a smaller share of consumers’ write-in responses than tariffs and high prices.

Among the 10 industry sectors tracked by ADP, six saw job gains and four saw losses in August, according to the company’s Thursday press release.

The sectors that added jobs during the month included leisure/hospitality (50,000), construction (16,000), professional/business services (15,000), information (7,000), natural resources/mining (4,000) and other services (1,000).

The sectors that shrank in August included trade/transportation/utilities, down 17,000; education/health services, down 12,000; manufacturing, down 7,000; and financial activities, down 2,000.

Establishments of all sizes added jobs during August. Small establishments with up to 49 employees added 12,000 jobs, medium establishments with between 50 and 499 employees added 25,000 jobs, and large establishments with 500 or more employees added 18,000 jobs.

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