Slowest job growth since '03

ADP tally shows weak employment gain.


NEW YORK (CNNMoney.com) -- Private sector employers added the fewest workers in August in more than four years, according to a closely-watched employment reading that is watched for clues as to what the Labor Department will report on labor market strength later this week.

Wednesday's reading from payroll services firm ADP found only a 38,000 net gain in jobs in the private sector in August, down from a 41,000 job gain in July. It was the smallest job gain in the ADP report since a 7,000 decline in jobs in June 2003.

The report showed that manufacturers cut 33,000 jobs in the most recent month, while the rest of the goods producing sector, primarily construction, cut an additional 16,000 jobs. But those cutbacks were offset by a gain of 87,000 jobs in the private sector.

The government is due to report on the overall labor market outside of farming jobs this Friday. Economists surveyed by Briefing.com are forecasting that there was a net gain of 110,000 jobs at both private sector and public sector employers in August, up from the 92,000 rise in July. The unemployment rate is forecast to remain at 4.6 percent.

The employment readings are being particularly closely watched this month due to the uncertainty about what the Federal Reserve will do with interest rates at its next meeting on Sept. 18. Many investors and economists are forecasting an interest rate cut, but a much stronger than expected job report could dash those hopes for a rate cut. Top of page

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Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.