Steven Chechette (C) will speak with recruiters at Keysource Booth at the Mega Jobnewsusa South Florida Job Fair held at Amerant Bank Arena in Sunrise, Florida on April 30, 2025.
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Private sector employment in the US rose lower than expected in August, data released provides the latest indication of trouble in the labor market.
The number increased by just 54,000 in August, according to data from the processor ADP, published Thursday morning. This is below the consensus forecast of 75,000 from the economists voted by Dow Jones, indicating a significant slowdown from the revised profit of 106,000 seen in the previous month.
“The year started with strong employment growth, but the momentum was lashed out by uncertainty,” ADP chief economist Nella Richardson said in a press release.
Richardson pointed to growing consumer concerns related to artificial intelligence as a potential factor in this decline in growth.
According to the ADP, jobs linked to trade, transportation and utilities showed certain weaknesses in August, leaving the group with 17,000 roles online. Education and health services continued, recording a decline in employment of 12,000 people.
However, these losses were partially offset by the boom in the leisure and hospitality industry, adding 50,000 jobs that month.
Wage growth continued at the same pace in August. Those in the role saw wages rise 4.4% year-on-year, but changes in duties recorded an increase of 7.1% over the same period.
Thursday’s ADP report has been added to an already-concerned photo of the labor market.
Jobless’s claims rose to 237,000, up 8,000 from the previous week. Government figures released Wednesday show that the Jobs and Workforce Turnover Survey registered one of the worst levels of job openings in July since 2020.
Now, attention is focused on the very important work report scheduled for Friday morning. Economists expect the official government report to show the 75,000 non-farm salaries added in August, according to estimates collected by Dow Jones. Economists forecast unemployment rates ranging from 4.2% to up to 4.3%.
Labour market worries have led traders to build on the already hefty bet that the Federal Reserve will cut fees at meetings later this month. According to CME’s FedWatch tool, there is a 97.4% chance of collecting in September, up from 96.6% a day ago.
– CNBC’s John Melloy contributed the report.
