US private sector employment missed expectations in August

The August national employment report, produced by the US ADP Research Institute in cooperation with the Stanford Digital Economy Lab, has been released. As a result, employment in the private sector in the US increased by 177 thousand people in August. Employment in the private sector, which was below market expectations, was expected to increase by 195,000 people in this period.

Private sector employment data for July was revised from 324,000 to 371,000. The number of employees increased by 18,000 people in small companies, 79,000 people in medium-sized companies and 83,000 people in large companies.

In the aforementioned period, 154,000 of the increase in employment were in the services sector and 23,000 in the production sector.

WAGE INCREASES CONTINUE TO DELAY

Annual wages rose 5.9 percent in August, according to ADP private employment data, calculated using payroll information from more than 25 million US employees. Wage growth, registered at its slowest pace since October 2021, registered at 6.2 percent in July.

In her assessment of the report, ADP Research Institute Chief Economist Nela Richardson said the August data is consistent with the pace of job creation before the pandemic.

“After two years of extraordinary recovery-related gains, we are moving toward more sustainable wage and employment growth as the economic effects of the pandemic abate,” Richardson said. (AA)