According to ADP, payroll processing company ADP, companies have slowed down their hiring pace in August due to growing economic fears.
According to its monthly payroll report, private payrolls increased by only 132,000 in the month. That’s down from July’s 268,000 gain.
Dow Jones estimated that the ADP count would be 300,000.
Nela Richardson (ADP chief economist) said, “Our data suggests that there is a shift to a slower pace of hiring as companies attempt to decipher economic signals.” We could be near an inflection point where supercharged job growths are replaced by something more common.
The August payroll numbers can be volatile. ADP’s release comes at an insecure time for the U.S. economy, which has experienced negative growth during the first six months of 2022, despite experiencing some of the most severe inflation rates since 1980. On Friday, the Bureau of Labor Statistics’s nonfarm payrolls report will be out. This is likely to indicate a 318k increase.
The ADP Report was on public suspension for the second half of summer the firm adjusted methodologyA partnership was formed with Stanford Digital Economy Lab.
ADP counts changes that are mostly technical. However, it differs from other companies in the way it handles issues like weather or natural disasters. ADP differs from BLS because it includes all employees who are active within the company. The BLS only measures those paid for that month.
Richardson explained to media members that Richardson’s new approach “captures an evolution in how ADP views data.” This independent estimate of private sector employment is based upon the clients we work with each day and leverages ADP’s full range of microdata.
ADP provides wage information, in addition to changing the method of counting jobs. The firm also reported an increase in annual wages of 7.6% during August.
Services-related sectors accounted for the majority of jobs with 110,00 more positions. While leisure and hospitality saw a rise of 96,000 with 12.1% in pay, they also experienced a 9.6% increase in their employment. 54,000 were contributed by trade, transport and utilities
However, many sectors experienced decreases. They include financial activities (-20k), education and medical services (-15,000), professional and commercial services (-14,000).
The goods-producing sector saw 21,000 construction jobs, and the natural resources and mining side had a gain of 2,000. The manufacturing sector was flat.
Companies with more than 500 employees saw a 54,000 increase in their business size. The growth was 53,000 for medium-sized companies, and 25,000 for those that have fewer than 50 workers.
Correction: In the first half 2022, there was negative growth in the U.S. Economy. A previous version of this article misstated the year.
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