U.S. Private Sector Job Growth Slows More Than Expected In August
(RTTNews) - Private sector employment in the U.S. increased by slightly less than expected in the month of August, according to a report released by payroll processor ADP on Wednesday.
ADP said private sector employment climbed by 177,000 jobs in August after surging by an upwardly revised 371,000 jobs in July.
Economists had expected private sector employment to advance by 195,000 jobs compared to the jump of 324,000 jobs originally reported for the previous month.
"This month's numbers are consistent with the pace of job creation before the pandemic," said ADP chief economist Nela Richardson.
She added, "After two years of exceptional gains tied to the recovery, we're moving toward more sustainable growth in pay and employment as the economic effects of the pandemic recede."
ADP said the slowdown in job growth was driven heavily by leisure and hospitality, with job creation by hotels, restaurants and other employers in the sector falling to 30,000 in August after months of strong hiring.
The report also said job stayers saw a year-over-year pay increase of 5.9 percent, the slowest growth since October 2021. Pay growth for job changers also decelerated to 9.5 percent.
For the first time, all 50 states and Washington, D.C. experienced a slowdown in pay growth, ADP said.
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