""The year started with strong job growth, but that momentum has been whipsawed by uncertainty," Nela Richardson, ADP's chief economist, said in the press release.She cited a mix of factors that are weighing on hiring decisions, "including labor shortages, skittish consumers, and AI disruptions."ADP's August report is among the first to namecheck AI disruptions, a rare admission that artificial intelligence is now beginning to reshape hiring sentiment."
"The topline figure hides stark divides across the economy. Almost all of August's gains came from leisure and hospitality, which added 50,000 positions, and construction, which grew by 16,000. Once those categories are stripped, private payrolls came out essentially flat, with job losses in manufacturing (-7,000), health and education (-12,000), and trade, transportation, and utilities (-17,000). Regionally, the South managed to add only 4,000 jobs, while the Mountain West actually shed 4,000."
America's private employers added 54,000 jobs in August, below economists' expectations of 68,000 and down from July's upwardly revised 106,000, signaling fragile employment momentum halfway through 2025. Labor shortages, skittish consumers, and AI disruptions are weighing on hiring decisions. Nearly all gains came from leisure and hospitality (+50,000) and construction (+16,000); excluding those, private payrolls were essentially flat with losses in manufacturing (-7,000), health and education (-12,000), and trade, transportation, and utilities (-17,000). Regionally, the South added 4,000 jobs while the Mountain West shed 4,000, and wage growth remained stronger for job-changers (7.1%) than stayers (4.4%). Markets are pricing a high probability of Fed easing in September.
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