US private sector employment rises less than expected

31st Jul 2024 07:24

(Sharecast News) - Private sector employment in the US rose less than expected in July, according to figures released on Wednesday by ADP.

Employment increased by 122,000 from June, versus expectations for a 150,000 jump. June's gain was revised from 150,000 to 155,000.

Small businesses with fewer than 50 employees shed 7,000 jobs, while medium businesses with between 50 and 499 employees added 70,000 jobs. Large businesses with more than 500 employees created an additional 62,000 jobs.

The service sector added 85,000 jobs, while the goods-producing sector saw a 37,000 increase.

The data also showed that job-stayers saw a 4.8% rise in annual pay in July, which was the slowest pace of growth in three years. Job-changers saw a big drop, with pay gains slowing to 7.2% from 7.7%.

Nela Richardson, chief economist at ADP, said: "With wage growth abating, the 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."