Private-Sector Hiring Slows in August; Medium-Sized Businesses Drive New Payrolls

Private-Sector Hiring Slows in August; Medium-Sized Businesses Drive New Payrolls
Image credit: marketwatch.com

Grow Your Business, Not Your Inbox

Stay informed and join our daily newsletter now!
Former Editorial Director at Entrepreneur Media
1 min read

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.

Related: Why Everyone Will Have to Become an Entrepreneur (Infographic)

More from Entrepreneur
Our Franchise Advisors will guide you through the entire franchising process, for FREE!
  1. Book a one-on-one session with a Franchise Advisor
  2. Take a survey about your needs & goals
  3. Find your ideal franchise
  4. Learn about that franchise
  5. Meet the franchisor
  6. Receive the best business resources
Make sure you’re covered if an employee gets injured at work by
  • Providing us with basic information about your business
  • Verifying details about your business with one of our specialists
  • Speaking with an agent who is specifically suited to insure your business
Discover a better way to hire freelancers. From business to marketing, sales, finance, design, technology, and more, we have the freelancers you need to tackle your most important work and projects, on-demand.

Latest on Entrepreneur