Hiring in the US private sector markedly undershot analyst expectations in August, said payroll firm ADP on Thursday, as the labor market’s health comes under scrutiny.
Private sector employment rose by 99,000 in August while job gains in July were revised down to 111,000, said ADP in a report.
A consensus forecast by analysts pegged growth at 150,000, according to Briefing.com.
The weaker-than-expected performance could fuel concern around the jobs market, which has held up in the face of high interest rates and lent support to consumer spending.
Data indicating the strength of the labor market could affect the size of upcoming Federal Reserve rate reductions, as policymakers walk a fine line between tackling inflation with high rates without triggering a downturn.
“The job market’s downward drift brought us to slower-than-normal hiring after two years of outsized growth,” said ADP chief economist Nela Richardson.
“The next indicator to watch is …