Payroll provider ADP today released its July employment report, showing job creation coming in well below expectations and sparking more concern about the hoped-for economic recovery. (Infographic showing employment changes by sector and business size here.)
Private-sector employment increased by 167,000 from June to July, on a seasonally adjusted basis.
Calculated Risk writes,
This was well below the consensus forecast for 1.25 million private sector jobs added in the ADP report.
From the ADP press release,
“The labor market recovery slowed in the month of July,” said Ahu Yildirmaz, vice president and co-head of the ADP Research Institute. “We have seen the slowdown impact businesses across all sizes and sectors.”
At Barrons, Lisa Beilfuss reports,
Hiring slowed markedly in July as a renewed spike in coronavirus cases prompted some states and companies to roll back reopenings, data released on Wednesday shows. It is the latest sign that the U.S. economic recovery is at risk of reversing…
While layoffs were concentrated in sectors most affected by shutdowns—hospitality, travel and retail—the pain has been spreading. Ahu Yildirmaz, vice president and co-head of the ADP Research Institute, said July’s slowdown affected businesses across all sizes and sectors. The construction and financial-services sectors were two that shed jobs during the month.
Less attention has been paid to a glimmer of good news regarding the broad services sector.
The Institute for Supply Management said Wednesday that its service sector index rose to a reading of 58.1, up from a June level of 57.1. Any reading above 50 means that the service sector is expanding.
The AP, however, emphasized that the positive number comes with a caution.
ctivity in the services sector, where most Americans work, increased in July but concerns remain about whether the recovery will persist with the recent rise in coronavirus cases.
Hopes for a strong V-shaped recovery recede.