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According to the ADP National Employment Report, the U.S. private sector added 99,000 jobs in August, less than the expected 145,000.
This marks the lowest job growth since January 2021. July’s job gains were also revised down to 111,000. Worker pay gains remained steady, with a 4.8% increase for those staying in their jobs and 7.3% for job changers.
“The job market’s downward drift brought us to slower-than-normal hiring after two years of outsized growth,” said ADP chief economist Nela Richardson, according to a Fox News Digital report. “The next indicator to watch is wage growth, which is stabilizing after a dramatic post-pandemic slowdown.”
Of the 99,000 jobs added in August, 72,000 were in the service sector, with education and health services leading at 29,000. Financial services added 18,000 jobs, and trade, transportation, and utilities added 14,000.
However, professional and business services lost 16,000 jobs, and information services shed 4,000. In the goods-producing sector, construction gained 27,000 jobs, while a loss of 8,000 in manufacturing offset an 8,000 gain in natural resources and mining.
Wow. Private sector job growth is at ‘recessionary levels’ according to BofA. So much for the idea of a strong labor market. pic.twitter.com/vohGfJq19l
— Markets & Mayhem (@Mayhem4Markets) September 3, 2024
In August, medium-sized businesses (50-499 employees) saw the most growth, adding 68,000 jobs, while large businesses (500+ employees) added 42,000. Small businesses (under 50 employees) lost 9,000 jobs.
Regionally, the South led with 55,000 new jobs, followed by the Northeast with 24,000, and the West with 20,000. The Midwest added 7,000 jobs. In the Northeast, the mid-Atlantic gained 30,000 jobs, offsetting a loss of 6,000 in New England.
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