Private job growth in the U.S. continued to slow in July, adding just 122,000 jobs, according to a report by payroll processing firm ADP. This figure is the lowest since January and falls short of the expected 150,000 jobs predicted by economists.
Key Highlights
- Job Growth:
- Total Jobs Added: 122,000
- Previous Month (June): 155,000 (revised)
- Expected Growth: 150,000
- Wage Growth:
- Year-Over-Year Increase: 4.8%
- Lowest Rise Since: July 2021
- Decrease from June: 0.1 percentage points
- Sector Breakdown:
- Trade, Transportation, and Utilities: +61,000 jobs
- Construction: +39,000 jobs
- Leisure and Hospitality: +24,000 jobs
- Education and Health Services: +22,000 jobs
- Other Services: +19,000 jobs
- Professional and Business Services: -37,000 jobs
- Information: -18,000 jobs
- Manufacturing: -4,000 jobs
- Small Companies (<50 employees): -7,000 jobs
Regional Employment Changes
- South: +55,000 jobs
- Midwest: +17,000 jobs
ADP’s chief economist, Nela Richardson, commented on the moderation in wage growth, noting that the labor market’s current state aligns with the Federal Reserve’s efforts to control inflation. She emphasized that any potential rise in inflation is unlikely to stem from labor market pressures.
This report comes ahead of the Bureau of Labor Statistics’ (BLS) release of nonfarm payroll data, which will provide a more comprehensive view of the employment landscape, including government jobs. Economists predict that the BLS report will show an increase of 185,000 jobs in July, with the unemployment rate remaining steady at 4.1%.