ADP Jobs Report Signals Slower Hiring in August
ADP jobs report showed private-sector hiring cooled in August with 38,000 jobs and wages up, creating mixed signals for traders ahead of the BLS payrolls.
KEY TAKEAWAYS
- ADP reported 38,000 private-sector jobs added in August, below economists' consensus near 47,000.
- Base pay rose 3.2% and gross pay rose 4.7% year-over-year for all workers.
- The weaker hiring figure signals softer labor-market momentum ahead of the Sept. 4 BLS nonfarm payrolls.
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The ADP jobs report on Sept. 2, 2026 showed private-sector hiring slowed in August even as base and gross pay continued to rise, complicating the outlook ahead of the Sept. 4 Bureau of Labor Statistics employment release.
ADP Report and Labor Market Context
ADP said in a press release that private-sector employment increased by 38,000 jobs in August. The report, produced with the Stanford Digital Economy Lab, also showed base pay rose 3.2% and gross pay rose 4.7% year-over-year for all workers. Economists had expected roughly 47,000 new private-sector jobs, while ADP revised its July estimate up to 46,000.
The ADP report is a private, model-based indicator that precedes the official U.S. Employment Report from the Bureau of Labor Statistics, scheduled for Sept. 4 at 8:30 a.m. ET. The economic calendar projects a nonfarm payroll change of -23,000 and an unemployment rate of 4.1%. Some coverage cited a 36,000 figure for August that differs from ADP’s release.
Job Gains, Losses, and Wage Trends
Job growth was concentrated in education and health services with about 45,000 new positions, followed by leisure and hospitality with 16,000 and construction with 12,000. Manufacturing lost roughly 17,000 jobs, professional and business services shed about 16,000, and natural resources and mining as well as trade, transportation, and utilities each declined by about 5,000.
Most hiring occurred at large employers, with companies of 500 or more employees adding about 34,000 jobs, while firms with fewer than 50 employees added roughly 3,000.
ADP distinguishes base pay, or regular salary and hourly wages, from gross pay, which includes tips, commissions, and bonuses. For workers who stayed in the same job, base pay rose about 3.0% year-over-year and gross pay rose about 4.4%, unchanged from July. For all workers, base pay rose 3.2% and gross pay 4.7%.
The combination of modest hiring concentrated in services and construction alongside declines in manufacturing and professional services suggests continued reallocation within the private sector. Wage pressures persist even as hiring slows.
The slower pace of hiring, below economists’ expectations, and ongoing wage growth present mixed signals about labor market momentum ahead of the official payrolls report.
"Private-sector employment increased by 38,000 jobs in August," ADP said in its press release.
