Summary
- US private nonfarm payrolls rose by 44,000 in July, missing market expectations.
- The latest ADP employment report showed a sharp slowdown from the previous month's increase of 98,000.
- Markets see the hiring slowdown as a factor that could lift expectations for Federal Reserve rate cuts.
Forecast Trend Report by Period
US private-sector job growth slowed more than expected in July.
Private nonfarm payrolls rose by 44,000 from a month earlier, according to the ADP National Employment Report released by Automatic Data Processing on Aug. 5. That was below the market forecast for a gain of 68,000 and sharply slower than the prior reading of 98,000.
The ADP report measures changes in private employment using payroll data from about 400,000 US businesses. It is typically released ahead of the Labor Department's nonfarm payrolls report and is widely used as a leading indicator for the official employment figures.
Markets view the data as a sign that the US labor market may be losing momentum. With job growth coming in below expectations and slowing from the previous month, the report could also strengthen expectations for Federal Reserve interest-rate cuts.
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.