U.S. private employers add fewer than forecast 122,000 jobs in July: ADP
Investing.com -- Private employers in the U.S. added fewer roles than anticipated in July, with jobs growth edging down as pay gains continued to slow, according to a report from payrolls processor ADP on Wednesday.
The ADP Employment report showed that private payrolls rose by 122,000 last month, down from an upwardly-revised total of 155,000 in June. Economists had seen the figure at 147,000.
Year-over-year pay gains for job-stayers slowed to 4.8% in July, the slowest pace of growth in three years. Job-changers saw a big drop, with pay gains slowing to 7.2% from 7.7%.
“With wage growth abating, the labor market is playing along with the Federal Reserve's effort to slow inflation,” said Nela Richardson, chief economist, ADP. “If inflation goes back up, it won't be because of labor.”
These numbers point to a possible easing in labor demand in the world's largest economy, a trend that could bolster expectations that the Federal Reserve will cut interest rates later this year. In theory, a slowdown in the jobs market may relieve some upward pressure on wages and, by extension, inflation.
Traders will get a fresh update on the strength of the U.S. labor market on Friday, when the all-important monthly nonfarm payrolls report is scheduled to be released.
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U.S. private employers add fewer than forecast 122,000 jobs in July: ADP