In July, US ADP private employment grew by 122k, significantly below the expected 166k. Breaking it down by sector, goods-producing jobs increased by 37k, while service-providing jobs rose by 85k. By establishment size, small companies lost -7,000k, medium-sized companies added 70k jobs, and large companies added 62k jobs.
Annual pay gains for job-stayers slowed to 4.8% yoy, the lowest rate in three years. Annual pay growth for job-changers also dropped significantly from 7.7% yoy to 5.2% yoy.
Nela Richardson, chief economist at ADP, commented, “With wage growth abating, the labor market is playing along with the Federal Reserve’s effort to slow inflation. If inflation goes back up, it won’t be because of labor.”
