U.S. Job Market Update

Date: August 2023

Summary: U.S. private employers hired the fewest workers in 3.5 years, adding only 99,000 jobs in August, with July’s gains also revised lower.

The ADP National Employment Report highlighted that the August increase was the smallest since January 2021, following a downwardly revised addition of 111,000 jobs in July. Economists had anticipated a rise of 145,000 jobs, reflecting potential labor market slowdowns.

The report, in collaboration with the Stanford Digital Economy Lab, comes before a more extensive employment report from the Labor Department’s Bureau of Labor Statistics. Private payrolls were expected to have risen by 139,000 jobs in August per a Reuters survey, with possible solid government job gains resulting in an estimated total of 160,000 nonfarm payroll increases.

The unemployment rate may decrease to 4.2% from 4.3%, hinting at minor labor market improvements despite the slow job growth.