US creates 374,000 jobs in the private sector in August, shows ADP report, below expectations

SAO PAULO – The United States created 374,000 jobs in the private sector in August, showed this Wednesday (1) the ADP Employment Report.

The number came in lower than expected as Covid-19’s resurgence coincided with hiring cuts, according to the payroll services company’s report. The median of the economists’ projections compiled by Refinitiv pointed to the creation of 613,000 new jobs.

The July data was revised slightly downwards, from 330 thousand to 326,000.

Most of the new jobs came from leisure and tourism, which added 201,000 positions in a somewhat hopeful sign that an industry plagued by a labor shortage continues to recover.

Education and health services totaled 59,000 this month, as hospitals in some parts of the country are still carrying many cases of coronaviruses, as schools begin to reopen.

The ADP precedes the release of the Employment Report next Friday (3), an event that is being closely monitored by the Federal Reserve to decide when to reduce the purchase of assets, the so-called “tapering”.

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