Private-sector employment increased by 428,000 in August, according to a report based on records from payroll-processing firm ADP. Given the enormous job losses during the Viral Recession, job growth of around 400,000 per month means that it would years for the labor market to recover from the coronavirus pandemic.

However, job growth in the ADP survey for July was just 212,000, while the official government jobs report from the Bureau of Labor Statistics, based on a broad survey of employers, showed an increase of 1.763 million jobs. It appears that the ADP report is having difficulty in capturing labor market dynamics in the current unprecedented environment. July job growth in the ADP report was revised higher from 167,000.

Small businesses (fewer than 50 employees) added 52,000 jobs in August, according to the ADP report, while medium-sized businesses (50 to 499 employees) added 79,000 jobs. The largest firms (500 or more employees) added 298,000 jobs over the month.

Goods-producing industries added 40,000 jobs in August, including 28,000 in construction and 9,000 in manufacturing. Private services-providing industries added 389,000 jobs over the month. This included a gain of 129,000 in leisure/hospitality services as restaurants and hotels continued to reopen, as well as increases of 100,000 in education/health services; 66,000 in professional/business services; and 58,000 in trade, transportation and utilities.

While weak job growth in the ADP survey relative to the huge number of jobs lost during the early stages of the pandemic is concerning, the ADP report has varied greatly from the BLS jobs report since the pandemic started. PNC is forecasting job growth of 2 million when the government releases its official jobs numbers on Friday morning. PNC expects that the unemployment rate fell to 9.8 percent in August, down from 10.2 percent in July and a peak of 14.7 percent in April.

The PNC Financial Services Group, Inc. is one of the largest diversified financial services institutions in the United States, organized around its customers and communities for strong relationships and local delivery of retail and business banking including a full range of lending products; specialized services for corporations and government entities, including corporate banking, real estate finance and asset-based lending; wealth management and asset management. For information about PNC, visit www.pnc.com.