U.S. Job Growth Slows to Just 54,000 in August 2025

Sunrise, Florida — U.S. private sector job growth slowed significantly in August, with only 54,000 jobs added, according to a report from ADP released on September 4, 2025.

The increase fell short of the 75,000 jobs economists predicted and marked a sharp decline from the 106,000 jobs added in July. Nela Richardson, ADP’s chief economist, noted that uncertainty in the economy has impacted hiring trends.

Richardson highlighted multiple factors contributing to this slowdown, including rising consumer concerns, labor shortages, and disruptions attributed to artificial intelligence. The trade, transportation, and utilities sectors were hit hardest, losing 17,000 jobs, while education and health services shed another 12,000 positions.

Despite these losses, the leisure and hospitality sector saw a significant gain, adding 50,000 jobs in August, which somewhat countered the overall downward trend in employment numbers.

Wage growth remained stable, with employees remaining in their roles seeing a 4.4% year-over-year pay increase. Those who changed jobs enjoyed an even larger wage boost, averaging a 7.1% rise.

The state of the labor market reflects growing economic uncertainty. Jobless claims increased to 237,000, exceeding expectations. Furthermore, the Job Openings and Labor Turnover Survey showed one of the lowest levels of job openings since 2020.

Regional data showed mixed results. The Northeast added 15,000 new jobs and the Midwest increased by 14,000 positions. Conversely, areas in the South and West faced more inconsistent outcomes, with some regions witnessing job gains while others saw losses.

Analysis of the ADP report suggests that the labor market may be experiencing broader issues, raising concerns about economic stability. Increased joblessness and a decline in job openings highlight vulnerability in current labor trends.

As the labor market’s future remains in question, attention will shift to the upcoming non-farm payrolls report. Economists expect it will reveal 75,000 jobs added in August, maintaining consistency with previous reports. If this trend persists, the Federal Reserve may need to consider a rate cut in response to economic conditions.