Private-sector employers in the U.S. added 38,000 jobs in August, according to the latest report from payroll processor ADP. The figure fell short of expectations, as economists had projected a gain of 47,000 jobs. July’s job growth was revised upward to 46,000 from an initial estimate of 40,000, according to ADP’s data released on Sept. 2.
The report marks the slowest pace of private payroll growth since January, continuing a trend of declining job creation observed since the spring hiring peak. While the labor market has remained in positive territory throughout 2025, the latest figures suggest a softening in hiring activity.
Sector performance varied widely, with gains concentrated in a few industries. Education and health services led job creation, adding 45,000 positions, followed by leisure and hospitality (16,000) and construction (12,000). The financial activities sector also saw modest growth, adding 6,000 jobs. However, manufacturing (-17,000) and professional and business services (-16,000) experienced notable declines.
Large businesses with 500 or more employees accounted for the majority of hiring, adding 34,000 jobs, while small businesses with fewer than 50 employees contributed just 3,000 jobs. ADP’s report also highlighted wage trends, with base pay for job stayers rising 3% year-over-year and gross pay (including bonuses and tips) increasing 4.4%. For job switchers, base pay grew 4.7% and gross pay rose 5.1%.
The ADP data serves as a preliminary indicator ahead of the U.S. Bureau of Labor Statistics’ monthly jobs report, scheduled for release on Sept. 5. Economists anticipate the government’s nonfarm payrolls report to show an increase of 53,000 jobs, following a decline of 23,000 in July. The unemployment rate is expected to remain at 4.1%.
ADP’s chief economist, Nela Richardson, noted that wage growth patterns reflect a complex labor market, influenced by factors such as demographic shifts, persistent inflation, and the impact of artificial intelligence on hiring. Richardson emphasized that wage acceleration remains uneven across industries and worker groups, complicating efforts to predict future hiring trends.