2023-08-02 15:02:00
US companies added more jobs in July than expected, highlighting the continuing strength of the labor market.
Las private payrolls increased by 324,000 last monthaccording to figures released Wednesday by the ADP Research Institute in collaboration with the Stanford Digital Economy Lab. The figure beat all estimates in a Bloomberg survey of economists.
Job offers in the United States fell to their lowest level in two years
The increase in the number of jobs was relatively across the board, but received a boost following an increase of 201,000 jobs in the leisure and hospitality sector. Jobs were added in all regions except the South, and were concentrated in companies with fewer than 250 employees.
Businesses with at least 500 employees shed jobs for the third month in a row. The cumulative loss is the largest since the start of the pandemic.
He wage growth continued to slow. Workers who remained in their jobs experienced a wage increase of 6.2% in July compared to a year earlier, the slowest pace since November 2021. For those who changed jobs, the median annual salary increase was 10.2%, the slowest in two years.
At the moment, “the economy shows a better than expected performance and a prosperous labor market continues to support household spending,” Nela Richardson, chief economist at ADP, said in a statement. “We continue to see a slowdown in wage growth without widespread job loss.”
US labor costs rise, but at the slowest pace in two years
Although job openings have slowly declined over the last year, many companiesparticularly in the service sector, continue hiring at a steady pace to meet consumer demand. Even as the economy weathers high interest rates and changing spending patterns, companies remain reluctant to lay off workers.
The monthly jobs report to be released on Friday by the Bureau of Labor Statistics, which also includes government payrolls, will offer further clues as to where the labor market is headed. Forecasters project the report will show employers added 200,000 jobs in July and wage growth cooled slightly.
Translated by Barbara Briceño.
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