U.S. private payrolls increased by 38,000 jobs in August, according to the ADP National Employment Report, marking a slower pace of hiring compared with the prior month. The figure fell short of economists' expectations, which had anticipated a rise of 48,000 jobs.
The July employment gain was revised upward to 46,000 from an initial estimate of 44,000, reflecting a modest upward adjustment in the data. Separate survey estimates from Reuters had projected private payrolls would rise by 45,000 in August after a July increase of 30,000.
The ADP report, developed in partnership with Stanford Digital Economy Lab, was released ahead of the Bureau of Labor Statistics' nonfarm payrolls report scheduled for Friday. Economists expect the BLS to report a rebound in nonfarm payrolls by 56,000 jobs in August, following an unexpected decline of 23,000 in July. The unemployment rate is forecast to remain steady at 4.1%.
The report follows Tuesday's release of job openings data from the BLS, which showed 1.05 job openings for every unemployed person in July, little changed from June. ADP's private payrolls figures have historically provided a weaker correlation with the BLS's official estimates, underscoring the report's limited predictive value for the broader labor market trend.
