Investing.com — US private payrolls rose by less than anticipated in August, in the latest sign of an ongoing, albeit gradual, slowdown in the American labor market.
Private payrolls increased by 99,000 jobs in August, compared to a downwardly revised total of 111,000 in July, according to payrolls processor ADP. It was the weakest month for the figure since January 2021.
Economists had called for a reading of 144,000, up from the original July mark of 122,000.
“The job market’s downward drift brought us to slower-than-normal hiring after two years of outsized growth,” said ADP Chief Economist Nela Richardson in a statement.
Elsewhere on Thursday, separate data showed that the number of Americans filing for first-time unemployment benefits came in at 227,000 in the week ending on August 31, a decrease of 5,000 from the prior week’s revised level of 232,000. Forecasts had seen the number in line with last week’s initial mark of 231,000.
Although the returns will likely be closely monitored by markets, the key release of the week will be Friday’s more comprehensive nonfarm payrolls report from the Labor Department’s Bureau of Labor Statistics.
Economists are predicting that the US economy added 164,000 jobs last month, an increase from 114,000 in the prior month. The July total, which was far below expectations, sparked a broader market downturn as traders fretted over the possibility of a US recession.
The numbers come as the Federal Reserve gears up to hold their next two-day policy gathering on Sept. 17-18. Investors widely expect the central bank to slash borrowing costs — currently standing at a 23-year high of 5.25% to 5.5% — down by 25 basis points.
But analysts have said that any indications of an intensifying jobs market slowdown could persuade the Fed to introduce larger rate cuts.
