ADP: August Private-Sector Employment Up 374,000

In the first of three key snapshots of employment this week, ADP, Roseland, N.J., said private-sector employment increased by 374,000 jobs between July and August.

The ADP National Employment Report said by company size, small businesses (1-49 employees) added 86,000 jobs in August; medium businesses (50-499 employees) added 149,000 jobs; and large businesses added 138,000 jobs.

By sector, ADP reported goods-producing employers added 45,000 jobs, while service-providing employers added 329,000 jobs.

ADP Chief Economist Nela Richardson said this month’s data showed a “downshift” in the labor market recovery. “We have seen a decline in new hires, following significant job growth from the first half of the year,” she said. “Despite the slowdown, job gains are approaching 4 million this year, yet still 7 million jobs short of pre-COVID-19 levels. Service providers continue to lead growth, although the Delta variant creates uncertainty for this sector. Job gains across company sizes grew in lockstep, with small businesses trailing a bit more than usual.”

“The Delta variant of COVID-19 appears to have dented the job market recovery,” said Mark Zandi, chief economist of Moody’s Analytics. “Job growth remains strong, but well off the pace of recent months. Job growth remains inextricably tied to the path of the pandemic.”

This morning, the Labor Department will issue its weekly Initial Claims report for unemployment insurance; on Friday, the Bureau of Labor Statistics will issue its monthly Employment Situation report on August jobs.

Mike Fratantoni, Chief Economist with the Mortgage Bankers Association, will provide commentary and analysis in Tuesday’s MBA NewsLink (which will not publish Monday because of the Labor Day holiday), along with Odeta Kushi, Deputy Chief Economist with First American Financial Corp.; Doug Duncan, Chief Economist with Fannie Mae; and Jay Bryson, Chief Economist with Wells Fargo Economics.