Weak Jobs Data Fails to Deter Rate Hike Expectations

The latest ADP report showed a slowdown in private hiring, with only 38,000 jobs added in August, well below the expected 47,000. However, this weak data did little to change market expectations of a Federal Reserve rate hike at its September 16 meeting.

Nela Richardson, ADP's chief economist, noted that predictable wage growth has been overtaken by demographic change, persistent inflation, and the effects of AI on jobs.

Bill Adams from Fifth Third Commercial Bank said the data show cyclical and white-collar losses offset by hiring in less cyclical industries, and flagged downside risk to Friday's government report. He also noted that AI is affecting hiring less than other changes in the economy.