Investing.com — U.S. private payrolls rose by less than expected in August, in the latest sign of a slowdown in the U.S. labor market that could bolster the case for the Federal Reserve to leave interest rates steady at its next policy meeting.
The ADP National Employment report on Wednesday showed that private payrolls increased by 177,000 jobs during the month, after a downwardly revised 312,000 in July. Economists had called for 195,000.
Job stayers saw a year-over-year pay bump of 5.9%, the report said, the slowest growth since October 2021. For the first time, all 50 states and Washington, D.C. experienced an easing in pay gains.
“This month’s numbers are consistent with the pace of job creation before the pandemic,” said Nela Richardson, chief economist at ADP, in a statement. “After two years of exceptional gains tied to the recovery, we’re moving toward more sustainable growth in pay and employment as the economic effects of the pandemic recede.”