The month of July saw 324,000 job growth, led by a 201,000 increase in restaurants, hotels, bars, and other related sectors. However, that projection was significantly more than the Dow Jones average of 175,000, but it was a decrease from the downwardly revised 455,000 in June.
The report also provides indications that the U.S. jobs market has regained its strength despite an extended Federal Reserve campaign to slow the economy and bring down inflation.
Nela Richardson, chief economist at ADP, said, “The economy is doing better than expected, and a healthy labour market continues to support household spending.”
“We continue to see a slowdown in pay growth without broad-based job losses,” she added.
Moreover, during this month, services-related businesses dominated job creation as the economy continued its shift away from being goods-oriented in the early days of the COVID epidemic. In the month, the sector employed 303,000 people.
Along with the big move in leisure and hospitality, information services increased 36,000 positions; trade, transportation, and utilities grew by 30,000; and the other services category, which embodies things such as housekeeping, dry cleaning, and others, contributed 24,000.
Also, goods producers added only 21,000 jobs, while natural resources and mining added 48,000, and manufacturing lost 36,000 jobs. The remaining 9,000 were the result of construction.
ADP noted that wages increased by 6.2% from a year ago, well above the long-term pace but the lowest growth since November 2021.
The ADP data acts as a forerunner to the Labour Department’s Bureau of Labour Statistics’ more widely recognised nonfarm payrolls tally on Friday. The figures can vary greatly, as they did in June, when ADP’s 455,000 total was far higher than the BLS’s 209,000.
Through the first six months of the year, ADP averaged 256,000 a month, while the BLS was at 278,000. The Dow Jones estimate for the official July government report is 200,000.
The ADP study also noted that the job increases were concentrated in enterprises with fewer than 50 employees, which accounted for 237,000 positions. Companies with 50 to 499 employees added 138,000 jobs, while large corporations lost 67,000.
- Published By Team Genuine Reporter