- U.S. private employers added just 8,250 jobs per week on average in the four weeks ending July 25, down sharply from 21,000 in the period ending June 20.
- The slowdown marks a sixth straight week of deceleration, signaling a cooling labor market ahead of the next ADP update on August 18.
- The data could influence expectations for future Federal Reserve policy, with potential implications for wage growth and consumer spending.
Private Payrolls Taper
Hiring in the U.S. private sector has lost momentum, with ADP data released Thursday showing employers added an average of only 8,250 jobs per week in the four weeks ending July 25. That's a steep drop from the 21,000 weekly average in the period ending June 20, marking the sixth consecutive week of slowing job gains.
The seasonally adjusted figures, which carry a two-week lag and are subject to revision, suggest the labor market is cooling more rapidly than many had anticipated. ADP's next employment update is scheduled for August 18, and economists will be watching closely for further signs of weakness.
"The recent trend is unmistakable," said one labor market analyst, who asked not to be named. "We're seeing a clear deceleration in hiring, which could have broader implications for the economy."
Market Implications
ADP data, which precedes the official Bureau of Labor Statistics payrolls report, often sets the tone for market expectations. A continued slowdown could signal moderation in wage growth and consumer spending, potentially influencing the Federal Reserve's timing on interest rate cuts.
Some sectors, particularly health care, have dragged down July's private-sector gains, and revisions to prior months remain possible. The cooling trend aligns with other indicators suggesting the economy is gradually slowing, though the labor market remains historically tight.
We reached out to ADP for additional details on the report but did not immediately receive a response.
This is a developing story; we will update this article as more information becomes available.