By Nathalie Voit
Job creation in the private sector softened in August, with private employers adding just 132,000 jobs last month, according to an ADP National Employment report published on Aug. 31.
This was the second consecutive month of decline in the pace of hiring. The U.S. economy added 268,000 and 480,000 jobs in July and June, respectively.
Private sector employment was also well below economists’ expectations of 225,000 positions added, according to CNN Business.
“Our data suggests a shift toward a more conservative pace of hiring, possibly as companies try to decipher the economy’s conflicting signals,” ADP’s chief economist Nela Richardson said in the report. “We could be at an inflection point, from super-charged job gains to something more normal.”
The leisure and hospitality industry added the most jobs, with 96,000 new positions in August. Within the services sector, trade, transportation, & utilities also recorded vast gains at +54,000.
Construction fared moderately well despite the cooldown in the housing market, with 21,000 new jobs created.
The information, financial activities, professional and business services, and education and health services sectors all posted declines. Job growth in the manufacturing sector stayed flat.
In terms of pay, annual wages were up 7.6% in August for those who stayed at their jobs. Workers who switched positions saw their median pay jump by 16.1% over the year.
Pay raises have been in line with monthly figures since the spring of this year but remain elevated compared to early 2021. ADP said annual pay increases were running at about 2% then.
This is the first time the payroll processing giant has reported wage data.
