ADP says that U.S. job growth slowed sharply to 177,000 in August, which was lower than expected

According to ADP, job growth in the United States slowed more than anticipated in August, suggesting that the country's surprisingly resilient economy may be beginning to sputter under the weight of increased interest rates.

Private firms added 177,000 positions in August, far fewer than the revised number of 371,000 jobs added in July, according to the firm's report released on Wednesday. According to a Dow Jones survey of economists, 200,000 new jobs should be created in August.

Additionally, according to ADP, both employees who moved occupations and those who stayed in their current roles saw a slowdown in salary increase.

Nela Richardson, chief economist at ADP, stated in a news release that the results for this month "are consistent with the pace of job creation before the pandemic." We're heading toward more steady growth in income and employment after two years of remarkable recovery-related gains as the pandemic's economic consequences fade.

Investors and analysts disagree on whether inflation in the United States can continue to trend down to 2% without a severe downturn in the economy, which is why the report was lower than expected. A significant factor in the economy's stronger growth than anticipated in 2023 has been the labor market's strength.