US private payroll growth slows in August; factory orders rebound in July

In August, U.S. private payrolls grew by 38,000 jobs, less than anticipated, according to ADP National Employment Report. This increase was offset by job losses in manufacturing and other sectors. Private employment rose by 45,000 positions in July, but economists had forecast a rise of 48,000. Education and health services added 45,000 jobs, while leisure and hospitality added 16,000 and financial activities grew by 6,000.

Construction added 12,000 positions, but manufacturing shed 17,000 jobs, while professional and business services lost 16,000. The ADP report is a leading indicator of the more comprehensive BLS report, which is set to release on Friday. The BLS reported 1.05 open jobs for every unemployed person in July, consistent with stable labor market conditions.

Despite economists viewing the labor market as "slow-hire, slow-fire," momentum has slowed since the spring surge. The labor market was weakened last year by policy uncertainty, including Trump's import tariffs. Some economists warn that the White House's immigration crackdown could hinder job growth. Private payrolls likely increased by 45,000 jobs in August, according to a Reuters survey of economists.

Nonfarm payrolls are expected to rebound by 56,000 jobs in August, reflecting a recovery in local government education payrolls.