2025.09.0412:17:28UTC+00US Private Sector Hiring Slows Sharply: ADP

In August 2025, private sector employers in the United States added 54,000 jobs, a decrease from the revised figure of 106,000 in July, and falling short of the anticipated 65,000. Despite an overall deceleration in hiring, the leisure, hospitality, and construction sectors demonstrated strong performance. Within the service-providing industries, employment increased by 42,000 positions, driven primarily by gains in leisure and hospitality (50,000), professional and business services (15,000), and the information sector (7,000). Conversely, declines were noted in trade, transportation, and utilities (-17,000), education and health services (-12,000), and financial activities (-2,000). The goods-producing sector saw an addition of 13,000 jobs, bolstered by increases in construction (16,000) and natural resources and mining (4,000), while manufacturing experienced a reduction of 7,000 jobs. According to Dr. Nela Richardson, ADP's chief economist, "The year commenced with robust job growth, but that momentum has been disrupted by uncertainty. The hiring slowdown could be attributed to factors such as labor shortages, cautious consumer behavior, and challenges from AI advancements." Meanwhile, wage increases remained relatively stagnant, with an annual pay growth of 4.4% for those remaining in their positions and 7.1% for individuals who switched jobs.