US Adds 177,000 Jobs in August, Fewer Than Expected
Summary from AllSides News Team
U.S. employers added just 177,000 jobs in August, fewer than expected, according to the latest ADP National Employment report.
The Details: Economists surveyed by Dow Jones had expected 200,000 jobs added, much fewer than July’s 371,000 estimate, according to CNBC (Center bias). ADP’s report specifically noted a decline in job creation by hotels and restaurants, which “fell to 30,000 in August after months of strong hiring.”
For Context: The news may be good for the Federal Reserve, which has cited strong job growth as evidence that the economy needs more interest rate hikes to slow inflation. Year-over-year consumer inflation was 3.2% in July, just 1.2 points higher than the Fed’s 2% target; August inflation numbers are scheduled for release on September 13.
How the Media Covered It: Coverage was mostly found in business outlets and was mostly similar regardless of bias rating. However, Fox Business (Lean Right bias) framed the issue more negatively than other sources.
Featured Coverage of this Story
From the CenterU.S. job growth slowed sharply to 177,000 in August, below expectations, ADP says
Job creation in the United States slowed more than expected in August, according to ADP, a sign that the surprisingly resilient U.S. economy might be starting to ease under pressure from higher interest rates.
The firm reported Wednesday that private employers added 177,000 jobs in August, well below the revised total of 371,000 added in July. Economists surveyed by Dow Jones were expecting 200,000 jobs added in August.
ADP also reported that pay growth slowed for workers who changed jobs and those who stayed in their current positions.
From the LeftU.S. job growth cooled in August. Here's what that means for inflation and interest rates.
The labor market is showing signs of cooling, shifting gears after months of strong job creation that fueled soaring inflation and prompted a string of interest rate hikes from the Federal Reserve.
Private employers added 177,000 jobs in August, compared with 371,000 in July, human-resources company ADP said on Wednesday. That's below the 200,000 new jobs that economists had expected ADP to report this month, according to financial data firm FactSet.
The slower job creation could signal that the labor market is returning to "a more sustainable dynamic," noted Javier David, managing editor...
From the RightPrivate sector job growth cools sharply in August to 177,000, worse than expected: ADP
Hiring by U.S. companies slowed more than expected in August, pointing to a labor market that is starting to cool in the face of higher interest rates, according to the ADP National Employment Report released Wednesday morning.
Companies added 177,000 jobs last month, below the 195,000 gain that economists surveyed by Refinitiv predicted. That is also much lower than the revised 371,000 increase recorded in July.
It marked the worst month for job creation since March.