Private payroll Job growth slowed significantly In August, indicating that companies are pulling back on hiring amid growing fears of an economic slowdown, according to the ADP’s national employment report released Wednesday morning.
Companies added just 132,000 jobs last month, sharply outstripping the 288,000-job gains expected by economists surveyed by Refinitiv. This is also down from the 270,000 increase recorded in July and the lowest since May, when employers hired just 128,000 workers.
“Our data points to a shift towards a more conservative pace of employment, possibly as companies try to decipher the conflicting signals for the economy,” said Nella Richardson, ADP’s chief economist. “We could be at an inflection point, from a highly charged job gain to something more natural.”
The ADP report has been paused for two months as a file The company reformulated the methodology to obtain job data and began collaborating with the Digital Economy Lab at Stanford. The changes are largely technical, with the ADP previously facing criticism for its struggle to accurately predict the number of workers in the Labor Department’s closely watched jobs report.
But the report now includes data on wages, which showed annual wages rose 7.6% in August — a worrying development as consumers continue to grapple with the hottest inflation in nearly four decades.
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