Private payroll growth in August slowed south of the border to its weakest level since October, as the U.S. economy continued to move toward full employment, ADP and Moody's Analytics reported Thursday.
Companies added 163,000 jobs for the month, a considerable slowdown from the 217,000 added in July and well below what had been an average of 206,000 a month. Economists had been expecting 190,000 new hires.
August saw a sharp decline in small business hiring that held down the headline number. Still, officials involved with compiling the report said the jobs market remains strong.
Small businesses, with fewer than 50 employees, added just 19,000 positions in August, while medium-sized firms of 50 to 499 workers led the way with 111,000 additions.
At a sector level, service providers contributed the bulk of the jobs with 139,000 thanks to a big boost from professional and business services (35,000) and education and health services (31,000). Leisure and hospitality also contributed 25,000, followed by trade, transportation and utilities with 21,000.
On the goods-producing side, manufacturing saw 19,000 new jobs and construction added 5,000 workers stateside.
The report comes a day ahead of the closely watched monthly non-farm payrolls reports on both sides of the border. Economists also are expecting America's number to show a gain of 190,000.
