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FinanceADP: US private sector adds 38,000 jobs in August, below expectations
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Payroll processing firm ADP reported that the U.S. private sector added only 38,000 jobs in August 2026, falling short of economists' expectations of 48,000 and down from a revised 46,000 in July. This marks the lowest monthly gain since January. Education and health services led job creation with 45,000 positions, followed by leisure and hospitality (16,000), and financial activities and other services (6,000 each). On the downside, manufacturing lost 17,000 jobs and professional and business services lost 16,000. Large businesses with 500+ employees added 34,000 jobs, while small firms added 3,000 and mid-sized firms saw flat hiring. Pay for job-stayers rose 4.4% year-over-year, while job-changers saw wage growth accelerate to 7.3%. The ADP report precedes the Labor Department's nonfarm payrolls report expected Friday, which economists forecast will show a gain of 56,000 jobs.
Source report
By Matthew Kazin Wed, September 2, 2026 at 5:22 AM PDT 2 min read
Companies in the private sector added 38,000 jobs in August, according to payroll processing firm ADP's latest report released Wednesday.
The figure fell below economists' estimates of a gain of 48,000 jobs and was down from the prior month's revised increase of 46,000 payrolls. August's figure is the lowest since January.
"Pay can tell us a lot about today's choppy hiring," said Nela Richardson, ADP's chief economist. "To understand hiring patterns, you have to look deeply into where pay growth is accelerating, where it's slowing, and for whom. Once-predictable wage growth has been overtaken by the complexities of demographic change, persistent inflation, and AI's effects on jobs."
Sector Breakdown
Industries with job gains:
- Education and health services: +45,000 positions
- Leisure and hospitality: +16,000
- Financial activities: +6,000
- Other services: +6,000
Industries with job losses:
- Manufacturing: -17,000
- Professional and business services: -16,000
- Natural resources and mining: -5,000
- Trade, transportation: -5,000
- Information: -4,000
Hiring by Business Size
- Large businesses (500+ employees): +34,000 jobs
- Medium businesses (50–499 employees): Flat
- Small businesses (fewer than 50 employees): +3,000 jobs
Wage Growth
- Workers staying in their roles: 4.4% pay increase year-over-year
- Workers changing jobs: 7.3% pay increase year-over-year
Outlook
The ADP data is released ahead of the Labor Department's nonfarm payrolls report, due Friday morning. The government data is expected to show an increase of 56,000 positions, rebounding from an unexpected loss of 23,000 reported in July. The unemployment rate is expected to remain at 4.1%.
Original article source: Private sector added 38,000 jobs in August, below expectations, ADP says
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Yahoo FinanceWestern
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U.S. private payrolls add only 38,000 in August, weakest since January, ADP reports