US Firms Add Fewer Jobs Than Forecast in August, ADP Data Show

September 3, 2020by Reade Pickert, Bloomberg News (TNS)
In this file photo, workers on the assembly line at the Ford Chicago Assembly Plant where the Ford Explorer and Lincoln Aviator sport utility vehicles are worked on June 24, 2019. The nation's factories continued to rebound last month from the sharp downturn earlier this year. (Jose M. Osorio/Chicago Tribune/TNS)

U.S. companies added fewer jobs than expected in August, suggesting the labor market rebound remains gradual, with employment well below pre-pandemic levels.

Businesses’ payrolls increased by 428,000 after an upwardly revised 212,000 in July, according to ADP Research Institute data released Wednesday. The median projection in a Bloomberg survey of economists called for a 1 million gain for the latest month.

The latest data suggest companies continue to hire at a more moderate pace than immediately following the lifting of business lockdowns months ago. Amid widespread joblessness, it will take sustained demand growth to rebuild the labor market to what it was before the pandemic.

Yet, headwinds remain. The Paycheck Protection Program, which helped support employment in recent months, expired in August, and lawmakers have yet to pass an another comprehensive stimulus package. Meanwhile, companies continue to announce layoffs almost six months after the Covid-19 shutdowns.

ADP’s figures have differed greatly from the government’s data over the past several months, leading in some cases to sizable revisions reflecting the process of benchmarking its number to the Bureau of Labor Statistics’ figure. For instance, ADP’s preliminary May estimate showed a 2.76 million decline in payrolls compared with the government’s initial print of a 3.09 million increase. ADP later revised its May figure to a 3.3 million gain.

“The August job postings demonstrate a slow recovery,” Ahu Yildirmaz, vice president and co-head of the ADP Research Institute, said in a statement. “Job gains are minimal, and businesses across all sizes and sectors have yet to come close to their pre-COVID-19 employment levels.”

Service-provider employment increased 389,000 in August, reflecting gains in leisure and hospitality and health care, according to ADP. Payrolls at goods producers rose 40,000 last month, largely reflecting a jump in employment at construction companies.

The figures come just before the government’s monthly jobs report on Friday, which is forecast to show private payrolls increased by nearly 1.3 million, the fourth-straight month of gains. The unemployment rate is expected to fall to 9.8%, the first single-digit print since March, but the degree of improvement may be impacted by an increase in participation as more out-of-work Americans look for jobs.

Payrolls at small, medium and large businesses all increased, yet the biggest advance occurred at firms employing at least 500 workers. Large businesses added 298,000 to payrolls and small companies took on 52,000.

ADP’s payroll data represent firms employing nearly 26 million workers in the U.S.

———

©2020 Bloomberg News

Distributed by Tribune Content Agency, LLC.

In The News

Health

Voting

Employment

Researchers: More Voices Needed to Shape Future of Work
In The News
Researchers: More Voices Needed to Shape Future of Work
June 7, 2021
by Dan McCue

A quartet of researchers in the United Kingdom say while the COVID-19 pandemic forced employers and employees alike into a “mass experiment” of workplace adjustments, the real work on what the future of work will look like is only just beginning. The researchers are Oliver Mallett,... Read More

US Jobs Edging Back to Normalcy as Pandemic Recedes
Employment
US Jobs Edging Back to Normalcy as Pandemic Recedes
June 4, 2021
by Victoria Turner

The U.S. employment situation seems to be edging closer to normalcy with the recent Bureau of Labor Statistics report showing a 1.7% decline in teleworking employees. This indicates more people are returning to the office, but it remains uncertain whether it is fully in-person or a... Read More

New Dems Outline Infrastructure Priorities for American Jobs Plan
Congress
New Dems Outline Infrastructure Priorities for American Jobs Plan
June 4, 2021
by TWN Staff

WASHINGTON - The House New Democrat Coalition on Wednesday endorsed several bills its members say will modernize the nation’s infrastructure, create jobs and grow the economy. The coalition, led by Infrastructure task force co-chairs Carolyn Bourdeaux, of Georgia, and Norma Torres, of California, NDC Chair Suzan... Read More

US Jobless Claims Fall to 406,000, a New Pandemic Low
Employment
US Jobless Claims Fall to 406,000, a New Pandemic Low

WASHINGTON (AP) — The number of Americans seeking unemployment benefits dropped last week to 406,000, a new pandemic low and more evidence that the job market is strengthening as the virus wanes and economy further reopens. Thursday's report from the Labor Department showed that applications declined... Read More

Granholm Says Green Jobs a Matter of ‘Economic Patriotism’
Employment
Granholm Says Green Jobs a Matter of ‘Economic Patriotism’
May 17, 2021
by Kate Michael

WASHINGTON — The Biden administration’s push to tackle several crises at once has reenergized the push for green jobs or those jobs which contribute to preserving or restoring the environment, including those in traditional sectors, like manufacturing.  His American Jobs Plan, an infrastructure investment proposal that... Read More

Employee Input Critical for Digital Workplace Success
Employment
Employee Input Critical for Digital Workplace Success
May 14, 2021
by Victoria Turner

The transition to remote work this past year happened a lot more quickly than many expected, which suggests organizations were “already working in a digital environment, we just had not realized it,” said Tatyana Mamut, senior vice president of new products at Pendo yesterday. Companies have... Read More

News From The Well
scroll top