Private-Sector Hiring Slows in August; Medium-Sized Businesses Drive New Payrolls
Private-sector hiring slowed in August, with the ADP Employment Report showing companies added 176,000 new jobs.
The figure was down from the 198,000 payrolls report in July, and it marks the lowest level since May, ADP said.
Interestingly, the smallest of American businesses were not the biggest driver of new payrolls. Medium-sized businesses, defined by ADP as those with between 50 and 499 employees, added 74,000 jobs in August.
That was ahead of the 71,000 jobs added by companies with between one and 49 workers. Of that 71,000, 40,000 came from companies with fewer than 20 workers, ADP said. Traditionally, the small business category has added the most jobs.
One other change was that the service sector saw a drop in employment – to 165,000 jobs in August, down from 176,000 in July. The service sector has been adding most of the jobs.
Instead, goods-producing jobs rose by 11,000 in August. However, that was half the rate than in July.