Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

U.S. Firms Add Fewer Jobs Than Forecast in August, ADP Data Show

ForexSep 02, 2020 08:36AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. U.S. Firms Add Fewer Jobs Than Forecast in August, ADP Data Show

(Bloomberg) -- U.S. companies added fewer jobs than expected in August, suggesting the labor market rebound remains gradual, with employment well below pre-pandemic levels.

Businesses’ payrolls increased by 428,000 after an upwardly revised 212,000 in July, according to ADP Research Institute data released Wednesday. The median projection in a Bloomberg survey of economists called for a 1 million gain for the latest month.

The latest data suggest companies continue to hire at a more moderate pace than immediately following the lifting of business lockdowns months ago. Amid widespread joblessness, it will take sustained demand growth to rebuild the labor market to what it was before the pandemic.

Yet, headwinds remain. The Paycheck Protection Program, which helped support employment in recent months, expired in August, and lawmakers have yet to pass an another comprehensive stimulus package. Meanwhile, companies continue to announce layoffs almost six months after the Covid-19 shutdowns.

ADP’s figures have differed greatly from the government’s data over the past several months, leading in some cases to sizable revisions reflecting the process of benchmarking its number to the Bureau of Labor Statistics’ figure. For instance, ADP’s preliminary May estimate showed a 2.76 million decline in payrolls compared with the government’s initial print of a 3.09 million increase. ADP later revised its May figure to a 3.3 million gain.

“The August job postings demonstrate a slow recovery,” Ahu Yildirmaz, vice president and co-head of the ADP Research Institute, said in a statement. “Job gains are minimal, and businesses across all sizes and sectors have yet to come close to their pre-COVID-19 employment levels.”

Service-provider employment increased 389,000 in August, reflecting gains in leisure and hospitality and health care, according to ADP. Payrolls at goods producers rose 40,000 last month, largely reflecting a jump in employment at construction companies.

The figures come just before the government’s monthly jobs report on Friday, which is forecast to show private payrolls increased by nearly 1.3 million, the fourth-straight month of gains. The unemployment rate is expected to fall to 9.8%, the first single-digit print since March, but the degree of improvement may be impacted by an increase in participation as more out-of-work Americans look for jobs.

Payrolls at small, medium and large businesses all increased, yet the biggest advance occurred at firms employing at least 500 workers. Large businesses added 298,000 to payrolls and small companies took on 52,000.

ADP’s payroll data represent firms employing nearly 26 million workers in the U.S.

U.S. Firms Add Fewer Jobs Than Forecast in August, ADP Data Show
 

Related Articles

Dollar Edges Lower Ahead of Fed Meeting; Yuan Weakens
Dollar Edges Lower Ahead of Fed Meeting; Yuan Weakens By Investing.com - Sep 21, 2021

By Peter Nurse Investing.com - The dollar edged lower in early European trade Tuesday, slipping from a month high, ahead of the start of this week’s crucial Federal Reserve...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (5)
Kaveh Sun
Kaveh Sun Sep 02, 2020 10:31AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Me n my friends get more work load. Companies use this event to squueze more out of employees.
Matt Novakovich
Matt Novakovich Sep 02, 2020 10:24AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
what about the Covid. have they found a fake vaccine yet for the fake virus so people can return to their jobs safely?
Hunt Richardson
Hunt Richardson Sep 02, 2020 10:00AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
once again "economists" and labor "analysts" are WAY off in their short-term expectations and projections. these are the people who are responsible for rigging the markets. how much did they get paid to fabricate numbers that have no basis in reality?!
The Man
The Man Sep 02, 2020 9:45AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Good ir bad
Plopseven Schwartz
Plopseven Schwartz Sep 02, 2020 9:22AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
“ADP’s figures have differed greatly from the government’s data over the past several months, leading in some cases to sizable revisions reflecting the process of benchmarking its number to the Bureau of Labor Statistics’ figure. For instance, ADP’s preliminary May estimate showed a 2.76 million decline in payrolls compared with the government’s initial print of a 3.09 million increase. ADP later revised its May figure to a 3.3 million gain.” So they made the numbers 5 million better out of nowhere???
Unoqueva Alguno
Unoqueva Alguno Sep 02, 2020 9:22AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
They are really good cookers! A pinch of this a pinch of that and here you have your 5M. Enjoy your meal!
Kaveh Sun
Kaveh Sun Sep 02, 2020 9:22AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
The ADP (ADP) estimate includes only private non-farm payrolls, while the BLS estimate includes both private and government non-farm payrolls.
Kaveh Sun
Kaveh Sun Sep 02, 2020 9:22AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
If u trade the market, u should know why
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email