Home / Business and Economy / US Companies Add 38K Jobs in August, Manufacturing Dips
US Companies Add 38K Jobs in August, Manufacturing Dips
2 Sep
Summary
- Private sector job growth slowed to 38,000 in August.
- Education and health services led job gains; manufacturing lost jobs.
- Pay raises remained steady for employees in August.
Private companies in the United States added 38,000 jobs in August, marking the slowest monthly gain since January and falling short of anticipated figures. This deceleration signals a broader slowdown in the labor market.
Job creation was concentrated in a few key sectors, with education and health services reporting the largest gains of 45,000 positions. The leisure and hospitality industry added 16,000 jobs, and construction saw an increase of 12,000. Conversely, manufacturing shed 17,000 jobs, and professional and business services lost 16,000.
Larger businesses, those with 500 or more employees, were the primary drivers of this growth, adding 34,000 jobs. Smaller companies with fewer than 50 employees contributed 3,000 jobs. Pay gains remained stable, with base pay for continuing employees rising 3% and gross pay increasing 4.4% compared to the previous year.
This ADP report precedes the Bureau of Labor Statistics' more comprehensive nonfarm payrolls data, which is expected to show an increase of 53,000 jobs for August, with the unemployment rate forecast to remain at 4.1%.
