ADP report: number of jobs created in August was revised to -3,000 from 54,000

Fresh economic data released Thursday pointed to growing strain in the labor market. First-time applications for unemployment benefits climbed to their highest level in nearly three months, private-sector hiring slowed sharply, and August recorded the worst round of layoff announcements since the pandemic — and before that, the Great Recession.

“The labor market is showing signs of cracking,” said Heather Long, senior economist at Navy Federal Credit Union. “It’s not a red siren alarm yet, but the signs keep growing that businesses are starting to cut workers.”

The numbers set the stage for Friday’s August jobs report, which economists expect will show about 80,000 jobs added — slightly higher than July’s disappointing 73,000, but still far below healthy levels.

July’s report was especially troubling, coming in well short of forecasts and followed by steep downward revisions. May and June’s job gains were slashed by a combined 250,000, leaving the three-month average at just 35,000 jobs added — the weakest pace outside of the pandemic in almost 15 years.

The fallout included political drama. President Donald Trump fired Bureau of Labor Statistics Commissioner Erika McEntarfer, accusing her of manipulating numbers for “political purposes”