US Private Payrolls Grew Below Expectation in August

Private sector companies added only 132,000 jobs in August. The latest ADP reading, released on Wednesday, indicates a slower pace of hiring after months of robust strong growth in the labour market.

August’s reading is far below market expectations standing at 225,000 jobs. There is a shaded zone on the borders of robust job gains and more normal figures according to ADP chief economist Nela Richardson.

The payroll processing agency adopted new methodology that aims to give economists and policymakers better visibility into the US labour market.

Wednesday’s ADP report comes a couple of days before the government’s official job report from the Bureau of Labour Statistics. Economists expect Friday’s BLS report to mention the addition of some 300,000 jobs to the US economy in August.