Private sector job growth in August falls short of expectations, only 177,000 added: ADP report

Private sector job growth in the US cooled sharply in August, with companies adding only 177,000 jobs, below economists' expectations and the lowest since March. The slowdown in hiring suggests that the labor market is starting to cool amid higher interest rates. The weaker-than-expected report comes after the Federal Reserve's aggressive tightening campaign, and Chair Jerome Powell has indicated that more rate increases may be on the table. Wages continued to moderate in August, with annual pay rising at the slowest pace since October 2021. The leisure and hospitality sector saw the most significant slowdown in job growth, while education and health services accounted for the biggest gains.