Private sector job growth slows in July to just 122K, worse than expected
Huntington Private Bank chief economist Olu Omodunbi says the jobs report shows a slowing in the labor market on 'The Claman Countdown.'
Hiring by U.S. companies slowed more than expected in July, pointing to a labor market that is continuing to cool in the face of higher interest rates, according to the ADP National Employment Report released Wednesday morning.
Companies added 122,000 jobs last month, missing the 150,000 gain that economists surveyed by LSEG predicted.
At the same time, the report showed that wage growth – a key driver of inflation – dropped slightly to 4.8%, the slowest pace of growth in three years. For workers who changed jobs, wages climbed 7.2%, down from the 7.7% increase recorded in June.
«With wage growth abating, the labor market is playing along with the Federal Reserve's effort to slow inflation,» said Nela Richardson, ADP chief economist. «If inflation goes back up, it won't be because of labor.»
WHITE-COLLAR WORKERS ARE STRUGGLING TO FIND JOBS AS THE LABOR MARKET SLOWS
Job growth was almost entirely concentrated in the services sector, with goods producers contributing just 3,000 jobs to the total. (Paul Bersebach/MediaNews Group/Orange County Register via / Getty Images)
Job growth was heavily concentrated in the services sector, with goods producers contributing just 37,000 jobs to the total.
Trade, transportation and utilities accounted for the bulk of the gains, adding 61,000 new jobs. The construction industry followed with a payroll increase of 39,000. However, job growth beyond that sector was mostly anemic. Leisure and hospitality added 24,000 positions, followed by education and health services with 22,000 and financial activities with 14,000.
THE NUMBER OF HIGH-PAYING JOBS IS
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