US Private Payrolls Rise 38,000 in August, Below Expectations

U.S. private employers added jobs at a slower-than-expected pace in August, with gains heavily concentrated in healthcare and a few other sectors, according to a report released Wednesday by payroll processor ADP. The data points to a continued cooling in the labor market as the Federal Reserve considers its next policy moves. ADP reported that private payrolls increased by 38,000 last month, falling short of the 47,000 increase economists had forecast. The August gain was the smallest since January and followed an upwardly revised increase of 46,000 in July. The report highlights a hiring landscape that has softened significantly since a surge in the spring. The headline number masked significant weakness across multiple industries. Education and health services led all sectors, adding 45,000 positions, with healthcare driving the majority of that growth. Leisure and hospitality contributed 16,000 jobs, and construction added 12,000. However, several major sectors shed workers. Manufacturing lost 17,000 jobs, professional and business services declined by 16,000, and both natural resources and mining as well as trade, transportation, and utilities reported decreases of 5,000 each.