Private payrolls grow by 428000 but miss expectations, ADP report says

Private payroll growth came in well below expectations for August, according to a report Wednesday from ADP, whose job tallies have differed widely from the government's during the coronavirus pandemic.

Companies added 428,000 jobs during the month, well below the 1.17 million estimate from economists surveyed by Dow Jones though a leap above the lackluster 212,000 that ADP measured for July.

"Job gains are minimal, and businesses across all sizes and sectors have yet to come close to their pre-COVID-19 employment levels," said Ahu Yildirmaz, vice president and co-head of the ADP Research Institute.

July's total was revised up from the initial estimate of 167,000, but was still well below the Bureau of Labor Statistics nonfarm payroll count of 1.76 million.

Mark Zandi, chief economist at Moody's Analytics, which collaborates with ADP on the report, said after the July release that the revisions were simply to correlate with the BLS count.

Economists expect the government's nonfarm payrolls report on Friday to show a gain of 1.32 million in August.

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