Lowest gain since January; education and health care added jobs while manufacturing shed workers

A "Now Hiring" sign is posted outside a business in Miami, Florida, in October last year. [Getty Images]
A "Now Hiring" sign is posted outside a business in Miami, Florida, in October last year. [Getty Images]

Growth in US private-sector employment slowed in August, new data showed.

Automatic Data Processing (ADP) said Wednesday (local time) that private employers added 38,000 jobs last month, the smallest gain since January and below the 47,000 forecast compiled by Dow Jones.

Education and health services led all sectors with 45,000 new jobs, while leisure and hospitality added 16,000 and construction gained 12,000. Manufacturing shed 17,000 positions, professional and business services lost 16,000, trade, transportation and utilities fell by 5,000, and the information sector declined by 4,000.

Large companies with 500 or more employees accounted for the bulk of the gains, adding 34,000 of the total.

Base pay for all private-sector workers rose 3.2 percent from a year earlier, while total compensation climbed 4.7 percent. Workers who stayed in their jobs saw total pay rise 4.4 percent, while those who changed jobs recorded a 7.3 percent increase.

ADP Chief Economist Nela Richardson said pay data reveals much about today's volatile labor market. "What was once a predictable wage growth trend has been obscured by complexities such as demographic shifts, persistent inflation and the impact of AI on jobs," she said.

The ADP report is based on data collected by a private firm and may differ from the official nonfarm payrolls figure compiled by the US government.

The Ministry of Employment and Labor is scheduled to release the official nonfarm payrolls report on Friday.


yckim6452@heraldcorp.com