ADP Private Payrolls Fall Far Short of Expectations

Businesses in the United States added far fewer workers to their payrolls in August than expected, according to data released Wednesday by payroll processor ADP.

Private payrolls increased by 374,000 in August, missing expectations for 600,000. The July reading was revised down by 4,000 to 326,000.

Leisure and hospitality led the job gains, with payrolls rising by 201.000. Education and health care businesses hired 59,000.

Construction hired 30,000 new workers. Manufacturing added just 9,000, according to ADP.

Overall, the goods providing sector added 45,000 workers. Employment in the services sector grew by 329,000.

ADP’s report on private payrolls has significantly departed from the U.S. government’s official tally several times since the pandemic struck. Last month, ADP estimated payrolls grew by 330,000 while the government’s estimate was 943,000.

According to ADP, businesses with fewer than 50 employees added just 86,000 positions in July. Companies with between 50 and 499 employees added 149,000. Larger businesses added 138,000 workers.