ADP Report Reveals 177,000 Jobs Added In August, Missing Predictions

Private businesses in the U.S. added 177,000 employees in August 2023, down from an upwardly revised 371,000 increase in July and missing market expectations of a 195,000 rise, the ADP National Employment Report showed.

However, this hiring tally marks the lowest level since March 2023 and falls short of the 6-month average of 294,000. The most notable gains occurred in the education and health services, which saw an upswing of 52,000 employees. Meanwhile, the financial industry employment growth remained flat.

Offering insight into the findings, Nela Richardson, Chief Economist at ADP, noted, “this month’s numbers are consistent with the pace of job creation before the pandemic. After two years of exceptional gains tied to the recovery, we’re moving toward more sustainable growth in pay and employment as the economic effects of the pandemic recede.”

This weaker-than-expected ADP employment report comes on the heels of a less favorable update on Tuesday, which revealed a decline in job openings. The data showed a drop in available positions from 9.2 million to 8.8 million in July, significantly below forecasts of 9.5 million.

With anticipation building, traders are now eagerly awaiting the week’s remaining key economic data releases. These upcoming reports include the second estimate of Q2 GDP growth rate on Wednesday, the PCE price index on Thursday, and the highly anticipated jobs report on Friday.

Read also: Job Vacancies Fall To 28-Month Low, Signaling Cooling Job Market

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