US job growth misses expectations, hiring slows
4.7 Macro US private payrolls rose by just 38,000–54,000 in August, missing forecasts. Wage growth slowed, signaling a cooling labor market and raising uncertainty for the Fed.
US private payrolls rose by only 38,000 in August, according to the ADP report, falling short of the expected 47,000 and marking the smallest gain since January. Another report showed 54,000 jobs were created, still below the market forecast of 68,000. Wage growth for job changers also slowed, dropping from 7.5% to 7.3%. The hiring slowdown was most pronounced outside healthcare and education, with sectors like manufacturing and professional/business services experiencing job losses. These figures reinforce the perception of a cooling US labor market and have increased uncertainty ahead of the official nonfarm payrolls report. Financial markets reacted with risk aversion, strengthening the US dollar and prompting investors to favor defensive sectors such as healthcare. The combination of weaker job creation and slowing wage growth has reignited debate about the Federal Reserve’s ability to balance employment and inflation.
