America’s private employers added only 54,000 jobs in August, much lower than economists’ already modest expectations of 68,000, according to payroll processor ADP’s latest National Employment Report, released Wednesday. The number marks a steep slowdown from July’s upwardly revised 106,000, underscoring how fragile employment momentum has become halfway through 2025.
“The year started with strong job growth, but that momentum has been whipsawed by uncertainty,” Nela Richardson, ADP’s chief economist, said in the press release.
She cited a mix of factors that are weighing on hiring decisions, “including labor shortages, skittish consumers, and AI disruptions.”
ADP’s August report is among the first to name-check AI disruptions, a rare admission that artificial intelligence is now beginning to reshape hiring sentiment.
