US private sector employment rises less than expected in August - ADP

(Sharecast News) - Private sector employment in the US rose less than expected in August, according to figures released on Wednesday by ADP. Employment increased by 54,000 from July, versus expectations for a 75,000 jump. Meanwhile, the July figure was revised to show that 106,000 were added, up from 104,000.

Small businesses with fewer than 50 employees added 12,000 jobs, while medium businesses with between 50 and 499 employees added 25,000 jobs.

Large businesses with more than 500 employees created an additional 18,000 jobs.

The service sector added 42,000 jobs, while the goods-producing sector saw a 13,000 increase.

The data also showed that year-over-year pay growth was 4.4% for job-stayers and 7.1% for job-changers.

Nela Richardson, chief economist at ADP, said: "The year started with strong job growth, but that momentum has been whipsawed by uncertainty.

"A variety of things could explain the hiring slowdown, including labour shortages, skittish consumers, and AI disruptions."