Summary
- ADP said employment in the US private sector rose by only 8,300, slowing from the previous 15,000 increase.
- Hiring growth at US private companies slowed for a sixth straight week, with the pace of gains shrinking to less than half of where it was a month earlier.
- ADP weekly employment change is used as a leading indicator for the US labor market, and a slowdown can be interpreted as a sign of weaker growth and consumer spending and as a negative factor for the US dollar.
Forecast Trend Report by Period
US private-sector hiring slowed, according to weekly data from Automatic Data Processing.
In its weekly employment-change report released on August 11, ADP said private payrolls rose by 8,300. That was below the previous increase of 15,000.
Hiring growth at US private companies has now slowed for six straight weeks. The latest reading is less than half the four-week average increase of 21,000 recorded in the four weeks through June 20, indicating a sharp deceleration over roughly a month.
ADP's weekly employment-change data is a high-frequency indicator tracking job gains in the US private sector. It reflects the moving average of employment changes over the latest four weeks.
Markets use the ADP employment gauge as one of the leading indicators of the US labor market's direction. Slower hiring can signal weaker economic growth and consumer spending, and typically acts as a negative factor for the US dollar.
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.