The employment
report published by Automatic Data Processing Inc. (ADP) and Moody's Analytics showed
that U.S. private employers added 122,000 jobs in July. This marked the lowest
number since January (+111,000).
Economists had predicted
an addition of 150,000 new jobs for July.
Meanwhile, the June
figure saw an upward
revision to 155,000 from the originally reported 150,000.
According to
the report, the July job increase was led by trade, transportation and utilities
(+61,000), construction (+39,000), and leisure and hospitality (+24,000). At
the same time, professional and business services (-37,000), information (-18,000)
and manufacturing (-4,000) shed jobs last month.
The report also
revealed that pay growth for job changers demonstrated a big drop last month - from 7.7 per cent
y-o-y in June to 7.2 per cent y-o-y, the lowest level since May 2021 (+6.7 per
cent y-o-y). Meanwhile, pay growth for job stayers slowed
from 4.9 per cent y-o-y to 4.8 per cent y-o-y, the lowest level in three years.
Commenting on
the latest report, Nela Richardson, ADP’s chief economist, noted that with wage
growth abating, the U.S. labour market is playing along with the Federal
Reserve's effort to slow inflation. “If inflation goes back up, it won't be
because of labour,” she added.