Private payrolls rise by 374,000 in August, sharply missing estimate

U.S. private-sector hiring rose much less than expected last month as a resurgence in new COVID-19 infections stunted job gains. 

The U.S. economy added 374,000 private-sector jobs in August, a modest increase from the downwardly revised 326,000 jobs added in July, according to the ADP National Employment Report released Wednesday. Analysts surveyed by Refinitiv had expected the addition of 613,000 jobs. 

"The Delta variant of COVID-19 appears to have dented the job market recover," said Mark Zandi, chief economist of Moody’s Analytics. "Job growth remains strong, but well off the pace of recent months." 

Also potentially impacting job growth was the start of the Child Tax Credit, which sent up to $1,800 per child per month to about 36 million American families. Economists are still assessing the impact the payments have had on the labor market.