U.S. Private Sector Hiring Lost Steam in July, Missing Expectations -- ADP
August 04 2021 - 8:57AM
Dow Jones News
By Xavier Fontdegloria
Hiring among U.S. employers slowed sharply in July, signaling
that the full recovery of the labor market could be bumpy despite
high economic growth.
The U.S. nonfarm private employment increased by 330,000 in
July, data from ADP National Employment Report showed Wednesday,
well below the 653,000 rise expected by economists polled by The
Wall Street Journal.
In June, the U.S. private sector created 680,000 jobs, down from
an initial estimate of 692,000.
"July payroll data reports a marked slowdown from the second
quarter pace in jobs growth," said Nela Richardson, chief economist
at ADP. The labor market recovery shows an uneven progress, she
said.
Bottlenecks in hiring continue to hold back stronger gains in
employment, particularly in light of concerns about the new
Covid-19 Delta variant, Ms. Richardson said. Barriers that keep
workers on the sidelines should ebb in the coming months, leading
to stronger monthly job gains, she said.
Medium businesses, between 50 and 499 employees, added 132,000
jobs in July. Large businesses, those of at least 500 workers,
created 106,000 jobs; and small businesses, with a maximum of 49
employees, registered 91,000 payroll gains.
By sector, 318,000 jobs were created among services providers.
Among those, 139,000 were added in the leisure and hospitality
sector, while education and health services gained 64,000
payrolls.
Jobs in the goods-producing sector were up by 12,000, with 8,000
in manufacturing, 3,000 in natural resources and mining, and 1,000
in construction, ADP said.
The report, carried out by the ADP Research Institute along with
Moody's Analytics, is based on data through the 12th of the
month.
The U.S. Department of Labor is expected to release its
employment report for July, which covers the same period as the ADP
National Employment Report, on Friday. Economists polled by The
Wall Street Journal are expecting it to show nonfarm payrolls up by
845,000 for the month and the unemployment rate down to 5.7%. The
ADP series can diverge considerably from the Labor Department's
data on a monthly basis.
Write to Xavier Fontdegloria at xavier.fontdegloria@wsj.com
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(END) Dow Jones Newswires
August 04, 2021 08:51 ET (12:51 GMT)
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