The numbers: The U.S. created a seasonally adjusted 163,000 private-sector jobs in August, payrolls processor ADP said Thursday, down from 217,000 in July.

That’s the smallest growth since October.

Economists polled by Econoday expected 182,000 new jobs. July’s numbers were revised lower by 2,000.

What happened: Midsized companies led the way, adding 111,000 jobs.

By sector, professional and business added 38,000 jobs, education and health added 31,000 positions and leisure and hospitality added 25,000 jobs. The natural resources and mining sector lost 1,000 jobs.

Before the ADP report, economists polled by MarketWatch expected the Labor Department to report a 200,000 gain in nonfarm jobs on Friday.

What they’re saying: “Although we saw a small slowdown in job growth the market remains incredibly dynamic,” said Ahu Yildirmaz, vice president and co-head of the ADP Research Institute. “Midsized businesses continue to be the engine of growth, adding nearly 70% of all jobs this month, and remain resilient in the current economic climate.”

Neil Dutta of Renaissance Macroresearch added: “Considering how low the jobless rate is, this represents a reasonably solid pace of employment growth.”

The big picture: Jobs growth has remained strong — and in turn consumer confidence — with the unemployment rate at a nearly two decade low. With more job openings than people looking for them, the labor market is set to remain on the tighter side for some time.

The only real hiccup is the mediocre growth in average wages, which suggests companies don’t feel the need to compete for labor.