August 2026 ADP's Employment Report Shows Hiring Weakness

ADP’s employment report gives us another way to think about how the job market is performing. In August 2026, private employers created only 38,000 jobs, which suggests that hiring is slowing. When we look more closely at the sectors gaining and losing jobs, education and health services led the gains, adding 45,000 jobs. Health services, in particular, continues to represent a significant source of employment growth, while education still has considerable room for improvement.

The largest job losses occurred in manufacturing, which declined by 17,000 jobs, followed by professional and business services, which lost 16,000. Trade, transportation, and utilities also experienced declines. Overall, the data show an uneven labor market, with some industries continuing to expand while others are pulling back.

Another interesting trend is that large businesses accounted for most of the job gains, while small businesses added only a modest number of jobs and medium-sized businesses were essentially flat. Wage growth also remains moderate, suggesting that employers are continuing to exercise caution in both hiring and compensation.

August 2026 ADP National Employment Report: Private-Sector Employment Increased by 38,000 Jobs

• Private-sector employment increased by 38,000 jobs in August, the slowest pace of job creation since January and below July’s revised gain of 46,000.
• Education and health services led employment growth with 45,000 new jobs, followed by leisure and hospitality with 16,000 and construction with 12,000.
• Several industries lost jobs, including manufacturing (-17,000), professional and business services (-16,000), trade, transportation and utilities (-5,000), and information (-4,000).
• Large businesses accounted for most of the gains, adding 34,000 jobs, while small businesses added 3,000 and medium-sized businesses were essentially unchanged.
• Wage growth remained positive but continued to moderate. Base pay increased 3.2% year over year, while gross pay increased 4.7%; job-changers continued to experience faster pay growth than job-stayers.

ADP Research. (2026, September 2). ADP National Employment Report: Private-sector employment increased by 38,000 jobs in August. ADP. https://mediacenter.adp.com/2026-09-02-ADP-National-Employment-Report-Private-Sector-Employment-Increased-by-38,000-Jobs-in-August