By Peter Schroeder - 08/31/11 09:16 AM ET The economy added jobs at a slightly slower rate in August, but businesses are also planning to lay off fewer workers, according to a pair of private reports.
Jobs in the private sector grew by 91,000 from July to August, slightly below expectations and down from the 109,000 added in July, according to payroll processor ADP Employer Services.
That July number was revised down on Wednesday, as ADP previously recorded 114,000 jobs were created that month.
While the ADP report is often treated by markets as a precursor to the official government employment report, the two figures have diverged significantly in recent months. Nonetheless, indications that the economy is still adding jobs despite a slowdown in the recovery may temper concern that Friday's newest employment report from the Labor Department will show little to no job growth.
Economists surveyed by Dow Jones expected the ADP report to show job growth totaling 100,000 for August.
The service sector led the way for job growth in August, as that area of the economy grew for its 20th straight month by adding 80,000 jobs. And the construction sector finally shook off three straight months of losses by adding 7,000 jobs. Nonetheless, that sector is still down by 2.1 million jobs from its 2007 peak.
Jobs in the goods-creating sector of the economy also turned things around in August, growing 11,000 after dropping by 2,000 in July. However, the manufacturing sector shrank, as it shed 4,000 jobs.
Meanwhile, a new report from outplacement firm Challenger, Gray & Christmas, Inc. found that businesses planned to lay off 51,114 workers in August -- a 23 percent drop from the 66,414 planned in July, which was the highest level seen in a year and a half.
The August decline marked a turnaround from three straight increases in the amount of firings planned by businesses. But it still is 47 percent higher than it was a year ago.
