Thursday morning, Automatic Data Processing, Inc. (ADP) released its report on private sector employment in the month of August, showing that employment decreased by a little bit more than economists had been anticipating.
The report showed that non-farm private sector employment fell by 33,000 jobs in August following a revised increase of 1,000 jobs in July. Economists had expected employment to fall by 30,000 jobs compared to the increase of 9,000 jobs originally reported for the previous month.
ADP said that the drop in jobs in August continues the recent trend in employment that is consistent with an economy that is growing slowly but has not fallen into recession.
The slightly bigger than expected drop in jobs came as a decrease of 78,000 jobs in the goods-producing sector more than an offset an increase of 45,000 jobs in the service-providing sector.
A continued decrease in manufacturing jobs contributed to the decrease in jobs in the goods-producing sector, with manufacturing sector employment falling by 56,000 jobs, marking the twenty-fourth consecutive monthly decline.
ADP added that the August data suggests little lessening of the recent strain on employment in the residential construction and financial activities sectors, which are the two sectors hit hardest by recent problems in mortgage markets.
The Labor Department will provide a more complete picture of the labor market on Friday with the release of its monthly report on employment, which includes government jobs.
Economists expect the Labor Department report to show a decrease of about 75,000 jobs in August, which would mark the eighth consecutive month of job losses. The unemployment rate is expected to remain unchanged at 5.7 percent.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.