U.S. private sector hiring rose less than expected in August, data released Thursday shows, offering the latest indication of trouble in the labor market.
Private payrolls increased by just 54,000 in August, according to data from processing firm ADP published Thursday morning. That’s below the consensus forecast of 75,000 from economists polled by Dow Jones and marks a significant slowdown from the revised gain of 106,000 seen in the prior month.
“The year started with strong job growth, but that momentum has been whipsawed by uncertainty,” said Nela Richardson, ADP’s chief economist, in a press release.
Richardson pointed to rising worries from consumers, labor shortages and disruptions tied to artificial intelligence as potential drivers of this decrease in growth.
Jobs tied to trade, transportation and utilities saw particular weakness in August, with the group losing 17,000 roles on net, according to the ADP. Education and health services followed, recording a decline of 12,000 jobs.
