Private-sector employment in the US rose by 177,000 jobs in August, which is below the increase of 312,000 in July (based on revised numbers), according to the ADP National Employment report released Aug. 30. The report also found a continued slowdown in pay growth in August, with those remaining in their jobs seeing the slowest growth since October 2021.

The slowdown in job growth was driven heavily by leisure and hospitality, according to ADP. Job creation by hotels, restaurants and other employers in the sector fell to 30,000 in August after months of strong hiring.

“This month’s numbers are consistent with the pace of job creation before the pandemic,” Nela Richardson, chief economist at ADP, said in a press release. “After two years of exceptional gains tied to the recovery, we’re moving toward more sustainable growth in pay and employment as the economic effects of the pandemic recede.”

Total private-sector employment in the US was nearly 129.0 million in August, according to the report.

Here is change by industry sector:

• Goods-producing, up 23,000
  • Natural resources/mining, up 5,000
  • Construction, up 6,000
  • Manufacturing, up 12,000
• Service-providing, up 154,000
  • Trade/transportation/utilities, up 45,000
  • Information, up 5,000
  • Financial activities, 0
  • Professional/business services, up 15,000
  • Education/health services, up 52,000
  • Leisure/hospitality, up 30,000
  • Other services, up 7,000

ADP also reported that August’s 5.9% median increase in pay for those remaining in their jobs was the slowest growth since October 2021. For those changing jobs, the median increase in annual pay was 9.5%.

Here are the median increases in pay by sector for those staying in their jobs:

• Goods-producing
  • Natural resources/mining, up 5.9%
  • Construction, up 6.0%
  • Manufacturing, up 5.5%
• Service-providing
  • Trade/transportation/utilities, up 5.8%
  • Information, up 5.4%
  • Financial activities, up 6.2%
  • Professional/business services, up 5.8%
  • Education/health services, up 6.5%
  • Leisure/hospitality, up 6.9%
  • Other services, up 5.8%