U.S. Private Sector Hiring Eased a Little in July, ADP Says

By Joshua Kirby

Hiring among U.S. private-sector employers slowed in July, though wage growth continued to decelerate.

Employment in the nonfarm private sector increased by 324,000, slowing from 455,000 in June, according to data from the ADP National Employment Report released Wednesday. Economists had expected an increase of 175,000, according to a poll by The Wall Street Journal.

June's reading was revised downward from an initial figure of 497,000.

Annual wage growth stood at 6.2% in July from 6.4% in June, according to the ADP survey, continuing recent months' trend of slowing growth. Pay data is based on the salaries of almost 10 million individual employees over a 12-month period.

"We continue to see a slowdown in pay growth without broad-based job loss," said Nela Richardson, the ADP's chief economist. "The economy is doing better than expected and a healthy labor market continues to support household spending," she said.

Employment gains were led by leisure and hospitality, which added more than 200,000 jobs in July.

Small- and medium-sized businesses added 237,000 and 138,000 jobs, respectively, while large businesses conversely lost some 67,000 positions, the survey shows.

By region, the most jobs were gained in the Northeast, making up the bulk of the increase, while job numbers declined in the South.

Goods producers added 21,000 jobs, with 9,000 new payrolls in construction and 48,000 in natural resources and mining. Manufacturing jobs slumped by 36,000, on the other hand, marking a fifth straight month of declines in the rate-sensitive industry.

The ADP estimate is based on aggregated payroll data of more than 25 million U.S. workers and is independent from U.S. Labor Department official data. The ADP series can diverge considerably from the Labor Department's data.

On Tuesday, data from the department showed an easing labor market and a decline in job openings. Openings nevertheless remain well above prepandemic levels, according to the department's figures.

Write to Joshua Kirby at [e-mail]; @joshualeokirby

(END) Dow Jones Newswires

August 02, 2023 09:03 ET (13:03 GMT)

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