U.S. private sector adds modest 54,000 jobs in August amid uncertainty

ROSELAND, N.J. - U.S. private sector employment increased by 54,000 jobs in August, marking a significant slowdown from previous months, according to the ADP National Employment Report released Thursday. The report comes from InvestingPro analysis shows ADP as a prominent player in the Professional Services industry, with a substantial market capitalization of $121 billion and a strong track record of maintaining dividend payments for 52 consecutive years.

The August figure represents nearly a 50% decrease from July’s revised total of 106,000 jobs. Pay growth remained steady at 4.4% year-over-year for job-stayers, while job-changers saw wages rise by 7.1%. According to InvestingPro data, ADP itself has demonstrated solid financial performance with a 7.07% revenue growth in the last twelve months, reflecting its resilient business model. The company’s stock is currently trading near its Fair Value based on comprehensive analysis available through InvestingPro’s detailed research reports.

Leisure and hospitality led job creation with 50,000 new positions, followed by construction with 16,000 jobs. Manufacturing saw a decline of 7,000 jobs, while trade, transportation and utilities lost 17,000 positions.

"The year started with strong job growth, but that momentum has been whipsawed by uncertainty," said Dr. Nela Richardson, chief economist at ADP. "A variety of things could explain the hiring slowdown, including labor shortages, skittish consumers, and AI disruptions."

By company size, medium-sized businesses (50-499 employees) added the most jobs at 25,000, while large establishments (500+ employees) contributed 18,000 positions. Small businesses added 12,000 jobs.

Regionally, the Northeast led with 15,000 new jobs, followed by the Midwest with 14,000. The South and West added 4,000 and 8,000 jobs respectively.

The financial activities sector showed the highest pay growth for job-stayers at 5.1%, while manufacturing followed at 4.7%. Large firms offered the highest wage increases at 4.8%.

The ADP National Employment Report is based on anonymized payroll data from more than 26 million private-sector employees across the United States, according to the company’s press release statement. InvestingPro reveals that ADP maintains a strong financial health score of GOOD, with 12+ additional exclusive ProTips and comprehensive metrics available to subscribers. The company’s extensive data coverage and analysis capabilities make it one of 1,400+ US equities featured in InvestingPro’s detailed research reports.

In other recent news, Automatic Data Processing, Inc. (ADP) reported its fourth-quarter earnings for fiscal year 2025, exceeding analysts’ expectations. The company posted an earnings per share (EPS) of $2.26, surpassing the forecasted $2.23, and achieved revenue of $5.13 billion, which was higher than the anticipated $5.04 billion. These results reflect a 6% organic constant currency revenue growth, allowing ADP to reach the high end of its annual guidance range of 6-7%. Additionally, ADP’s board of directors declared a regular quarterly dividend of $1.54 per share, payable on October 1, 2025, to shareholders of record as of September 12, 2025. In analyst updates, Stifel raised its price target for ADP from $305 to $318, citing strong margins and the company’s better-than-expected fourth-quarter performance. However, Stifel maintained a Hold rating on the company. These developments highlight ADP’s ongoing financial strength and strategic decisions in the current market environment.

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