ADP: US Private Sector Job Growth Slows Sharply in August

Hiring in the US private sector slowed significantly in August, according to data from payroll firm ADP. The company reported that private sector job growth came in at 38,000 last month, down from July and well below the 47,000 predicted by economists.

This marks the third consecutive month where ADP's hiring numbers have missed market expectations. The manufacturing, professional services, and information sectors all lost jobs, while education and healthcare, construction, and leisure and hospitality showed robust hiring.

Base pay for all private-sector workers rose by 3.2 percent in August, with gross pay up 4.7 percent year-over-year, according to ADP data. This wage growth lags behind inflation, which has remained above the Federal Reserve's two percent target for more than five years.

Nela Richardson, chief economist at ADP, noted that 'pay can tell us a lot about today's choppy hiring' and emphasized the importance of understanding where pay growth is accelerating or slowing down.