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Private payrolls rose by 38,000 in August, though it was less than expected and fell below the 46,000 jobs added in July, ADP reported on Wednesday. File Photo by Tasos Katopodis/UPI | License Photo

Sept. 2 (UPI) — Private payrolls rose by 38,000 in August, though it was less than expected and fell below the 46,000 jobs added in July, ADP reported on Wednesday.

August’s new hires report was the slowest month in terms of hiring since January with the manufacturing, professional services and information industries cutting jobs.

“Pay can tell us a lot about today’s choppy hiring,” Dr. Nela Richardson, chief economist for ADP, said in a statement. “To understand hiring patterns, you have to look deeply into where pay growth is accelerating, where it’s slowing, and for whom. Once-predictable wage growth has been overtaken by the complexities of demographic change, persistent inflation, and AI’s effects on jobs.”

Manufacturing jobs posted the biggest losses, down 17,000, followed by professional and business services, down 16,000. The losses offset a 45,000 gain in education and health services jobs and 16,000 new hires in the leisure and hospitality industry.

Large businesses of more than 500 employees added the most new hires, up 34,000, followed by small businesses with one to 19 employees, up 20,000. Small businesses with 20 to 49 employees decreased by 17,000 jobs.

The Dow Jones consensus estimate projected 47,000 new hires in August, 9,000 jobs more than ADP’s reported results.

Wednesday’s report comes ahead of the U.S. Bureau of Labor Statistics’ monthly nonfarm payrolls report expected on Friday.