The ADP Employment Report showed that private payrolls were weaker than forecasted in August, with 177,000 jobs created. Most of the gains came in the services sector, spread fairly evenly between trade/transportation/utilities, education/health services, and leisure/hospitality.

ADP said that “job growth slowed notably last month, driven heavily by leisure and hospitality.” That sector added 30,000 jobs in August, finally cooling after months of strong gains that may have been overstated due to seasonal adjustment issues.

What’s the bottom line? Annual pay for job stayers increased 5.9% and job changers saw an average increase of 9.5%. While these figures are still high, they have cooled considerably from last year’s highs of 8% for job stayers and 16% for job changers. This is significant because it suggests lower wage-pressured inflation.