US companies added more jobs in July than expected, highlighting the persistent strength of the labor market.
(Bloomberg) — US companies added more jobs in July than expected, highlighting the persistent strength of the labor market.
Private payrolls increased by 324,000 last month, according to figures published Wednesday by the ADP Research Institute in collaboration with Stanford Digital Economy Lab. That exceeded all estimates in a Bloomberg survey of economists.
The job gains were relatively broad-based, but boosted by a 201,000 advance in leisure and hospitality. Jobs were added in all regions but the South and concentrated among businesses with less than 250 employees.
Companies with at least 500 staffers shed positions for a third straight month. The cumulative loss is the biggest since the onset of the pandemic.
Wage growth continued to decelerate. Workers who stayed in their jobs experienced a 6.2% pay increase in July from a year ago, the slowest since November 2021. For those who changed jobs, the median rise in annual pay was 10.2%, the slowest in two years.
“The economy is doing better than expected and a healthy labor market continues to support household spending,” Nela Richardson, ADP’s chief economist, said in a statement. “We continue to see a slowdown in pay growth without broad-based job loss.”
While job postings have slowly ebbed over the past year, many businesses — particularly in the service sector — continue to hire robustly to keep up with consumer demand. Even as the economy weathers high interest rates and shifting spending patterns, firms remain reluctant to let go of workers.
The monthly jobs report due Friday from the Bureau of Labor Statistics, which also includes government payrolls, will provide further insight into the direction the labor market is headed. Forecasters project that report will show employers added 200,000 jobs in July and wage growth cooled somewhat.
–With assistance from Jordan Yadoo and Augusta Saraiva.
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