U.S. Private Sector Adds 428,000 Jobs in August -- ADP
September 02 2020 - 9:09AM
Dow Jones News
By Xavier Fontdegloria
The nonfarm private sector in the U.S. added 428,000 jobs in
August, suggesting the pace of job gains accelerated in the month,
data from ADP National Employment Report showed Wednesday.
Total U.S. nonfarm private employment increased by 428,000 from
July to August. Economists polled by The Wall Street Journal were
expecting it to show a much higher gain of 1.17 million jobs.
August's reading signals an acceleration in job creation
compared with July figures, which were upwardly revised to 212,000
jobs gained from an initial estimate of 167,000.
Despite the improvements registered since May, the labor market
is still far from recovering from the record-breaking 19.4 million
jobs destroyed in April as the coronavirus pandemic took hold and
economy was brought into halt.
"The August job postings demonstrate a slow recovery," Ahu
Yildirmaz, co-head of the ADP Research Institute, said in prepared
remarks. "Job gains are minimal, and businesses across all sizes
and sectors have yet to come close to their pre Covid-19 employment
levels," he said.
Large businesses, those of at least 500 workers, are the ones
which added most jobs from July to August, with an increase of
298,000. Medium businesses, between 50 and 499 employees, added
79,000 jobs, while small businesses, with a maximum of 49
employees, registered a 52,000 increase in jobs.
Job creation was seen across almost all sectors, the report
showed, with the service-providing sector adding 389,000 jobs.
Among this group, leisure and hospitality gained the most, with
129,000 jobs created, followed by 100,000 new jobs in education and
health services.
The goods-producing sector added 40,000 jobs, with construction
gaining 28,000 and manufacturing 9,000.
The report, done by the ADP Research Institute along with
Moody's Analytics, is based on data through the 12th of the
month.
The U.S. Department of Labor is expected to release its August
employment report, which covers the same period as the ADP National
Employment Report, on Friday. Economists are expecting it to show
nonfarm payrolls up 1.32 million jobs for the month, and a
reduction in the unemployment rate to 9.8% from 10.2% in July.
Write to Xavier Fontdegloria at xavier.fontdegloria@wsj.com
(END) Dow Jones Newswires
September 02, 2020 08:54 ET (12:54 GMT)
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