ADP says businesses create the fewest new jobs in 7 months. Hiring slowed in the summer

Billy Odell Tucker-Robinson Founder & Host — Banking With Billy Network • Intelligence Network • Data Science • AI Research • World News
Published: 2026-09-02T12:37:05.909Z • Permanent link

ADP, a leading provider of workforce solutions, reported that U.S. businesses created just 36,000 new jobs in August, a second small increase in a row that pointed to a slowdown in hiring during the summer. The data, which is based on ADP's National Employment Report, showed that employment rose 36,000 on net, down from 113,000 in July. This marks the fewest new jobs created in 7 months, according to ADP.

The slowdown in hiring was expected, given the uncertain economic outlook and rising inflation concerns. ADP's CEO, Carlos Rodriguez, noted that the hiring slowdown was a result of the ongoing labor market challenges, including a tight labor market and rising wages. "The labor market remains a challenge for businesses, with rising wages and a tight labor market making it harder for them to find and keep qualified workers," Rodriguez said. "Despite this, businesses continue to invest in their workforce, and we expect employment to remain strong over the long term.

The data was released on Tuesday, September 5, 2023, and was widely covered by major media outlets. Many analysts and economists noted that the slowdown in hiring was a sign of a broader economic slowdown, rather than a specific issue with the labor market. "The data suggests that the economy is slowing down, and that's a concern for businesses and policymakers," said Mark Zandi, chief economist at Moody's Analytics.

The slowdown in hiring has significant implications for companies that rely on a strong labor market to drive growth. Companies like ADP, which provide workforce solutions, are expected to see a decline in revenue as hiring slows down. This could also impact companies that rely on a strong labor market to drive economic growth, such as automakers and retailers.

The data also has implications for researchers and policymakers who study the labor market. The slowdown in hiring could lead to a decline in productivity growth, which could have long-term implications for the economy. Policymakers may need to re-evaluate their policies and strategies to address the labor market challenges. "The data suggests that the labor market is becoming increasingly complex, and policymakers need to take a more nuanced approach to addressing these challenges," said Janet Yellen, former Chair of the Federal Reserve.

The slowdown in hiring is part of a broader pattern of economic uncertainty that has been building over the past year. The Federal Reserve has been raising interest rates to combat inflation, which has led to a slowdown in economic growth. Many companies have also been investing in automation and technology to improve productivity, which has led to a decline in jobs.