US private sector adds merely 54,000 in August: ADP

America’s private employers added only 54,000 jobs in August, much lower than economists’ already-modest expectations of 68,000, according to payroll processor ADP’s latest National Employment Report, released Wednesday.

The number marks a steep slowdown from July’s upwardly revised 106,000, underscoring how fragile employment momentum has become halfway through 2025.

“The year started with strong job growth, but that momentum has been whipsawed by uncertainty,” Nela Richardson, ADP’s chief economist, said in the press release.

She cited a mix of factors that are weighing on hiring decisions, “including labor shortages, skittish consumers, and AI disruptions.”

This follows the loss of 17,000 jobs in trade, transportation, and utilities in August; a decline of 12,000 in education and health services; and a gain of 50,000 in leisure and hospitality.

While wages increased 4.4% year-over-year (YoY) in August, job changes increased 7.1% during the same period.

All eyes are now on the US non-farm payrolls report, due out Friday, which is expected to show 75,000 jobs added in August and unemployment rising to 4.3%.