U.S. businesses slowed their pace of hiring in August, according
to an employment survey released Thursday.
The survey, along with other job-related news, suggests a
firming but not robust labor market.
Private payrolls in the U.S. increased by 204,000 jobs last
month, says the national employment report compiled by payroll
processor Automatic Data Processing Inc. (ADP) and forecasting firm
Moody's Analytics.
It is the weakest private-sector hiring number since March.
Economists surveyed by The Wall Street Journal expected ADP to
report that 215,000 new private-sector jobs had been created in
August. The July increase was revised down to 212,000 from
218,000.
The ADP estimate is issued ahead of the Bureau of Labor
Statistics' employment situation report scheduled for Friday.
Economists think the BLS will report August nonfarm payrolls,
which include government positions, increased by 225,000 jobs, a
bit more than the 209,000 added in July. If that is the case, and
barring large downward revisions, August would mark the
seventh-consecutive monthly gain of 200,000 jobs or more.
The unemployment rate is expected to fall to 6.1% from 6.2% in
July.
Economists are unlikely to change their payrolls forecast after
seeing the ADP number. The private-sector report has a history of
large misses when it comes to calling the BLS's number, although
the margin has narrowed so far in 2014.
According to ADP, firms employing between 1-49 workers added
78,000 new workers last month. Medium-size businesses with payrolls
of 50-499 workers increased payrolls by 75,000 employees. Large
firms, businesses with 500 or more employees, hired 52,000 more
workers.
Service-sector payrolls increased by 164,000 workers in August.
The factory sector added 23,000 positions, a large gain for that
sector. Construction payrolls increased by 15,000 slots.
Other recent job news was more upbeat.
On Wednesday, TrimTabs Investment Research said the U.S. economy
created 231,000 jobs last month.
In addition, Challenger Gray & Christmas reported Thursday
that companies announced 40,010 layoffs in August, down 15% from
July's figure and 21% below the number of job cuts announced in
August 2013.
Write to Kathleen Madigan at kathleen.madigan@wsj.com
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