Steven Chechette (C) speaks with a recruiter at the KeySource booth at the Mega JobNewsUSA South Florida Job Fair held in the Amerant Bank Arena in Sunrise, Florida, on April 30, 2025.<\/p>\n
Joe Raedle | Getty Images<\/p>\n
U.S. private sector hiring rose less than expected in August, data released Thursday shows, offering the latest indication of trouble in the labor market.<\/p>\n
Private payrolls increased by just 54,000 in August, according to data from processing firm ADP published Thursday morning. That’s below the consensus forecast of 75,000 from economists polled by Dow Jones and marks a significant slowdown from the revised gain of 106,000 seen in the prior month.<\/p>\n
“The year started with strong job growth, but that momentum has been whipsawed by uncertainty,” said Nela Richardson, ADP’s chief economist, in a press release.<\/p>\n
Richardson pointed to rising worries from consumers, labor shortages and disruptions tied to artificial intelligence as potential drivers of this decrease in growth.<\/p>\n
Jobs tied to trade, transportation and utilities saw particular weakness in August, with the group losing 17,000 roles on net, according to the ADP. Education and health services followed, recording a decline of 12,000 jobs.<\/p>\n
But those losses were offset in part by a boom in the leisure and hospitality industry, which added 50,000 jobs in the month.<\/p>\n
Wage growth maintained the same pace in August. Those staying in their roles saw their pay rise 4.4% year-over-year, while job changes recorded a 7.1% increase over the same period.<\/p>\n
Thursday’s ADP report adds to an already concerning picture of the labor market.<\/p>\n
Jobless claims increased to 237,000, up 8,000 from the prior week and above estimates, per data also published Thursday morning. The Job Openings and Labor Turnover Survey registered one of its worst levels<\/a> for job openings in July since 2020, according to government figures released Wednesday.<\/p>\n Now, attention will home in on the all-important jobs report slated for Friday morning. Economists expect the official government report to show 75,000 non-farm payrolls added in August, about even with the prior month, according to estimates collected by Dow Jones. Economists predict the unemployment rate inched up to 4.3% from 4.2%.<\/p>\n