US private-sector hiring slows to a crawl with just 38K jobs added in August

The US private sector added just 38,000 jobs in August, according to the latest ADP National Employment Report. That’s the slowest pace of hiring since January, and a step down from July’s revised figure of 46,000. Where the jobs went, and where they didn’t Goods-producing industries lost 10,000 jobs on the month, dragged lower by manufacturing, which shed 17,000 positions. Construction managed to partially offset the damage by adding 12,000 jobs, but the net result was still negative for the sector. Service-providing industries carried the weight, adding 48,000 jobs. Education and health services alone accounted for 45,000 of those gains. Large establishments with 500 or more employees were responsible for 34,000 of the net gains. Geographically, the Northeast was the standout performer, adding 38,000 jobs. Wages are growing, but the pace is cooling Base pay for all private-sector workers rose 3.2% year-over-year. Workers who stayed in their current roles saw a 3.0% increase, while those who switched jobs captured a 4.7% bump. Overall gross pay climbed 4.7% compared to the same period a year earlier. What this means for the broader economy The ADP report, compiled from anonymized ...