US economy slowing down; creates only 330K private jobs in July

The report, which is derived from ADP's actual payroll data, measures the change in total nonfarm private employment each month on a seasonally adjusted basis.

Small businesses added 91,000 jobs, while large businesses generated 106,000 jobs in the month of July. Medium-sized private companies created the highest number of jobs – 132,000 – last month.

Nela Richardson, chief economist, ADP, said: "The labour market recovery continues to exhibit uneven progress, but progress nonetheless. July payroll data reports a marked slowdown from the second quarter pace in jobs growth.

"For the fifth straight month the leisure and hospitality sector is the fastest growing industry, though gains have softened. The slowdown in the recovery has also impacted companies of all sizes. Bottlenecks in hiring continue to hold back stronger gains, particularly in light of new COVID-19 concerns tied to viral variants. These barriers should ebb in coming months, with stronger monthly gains ahead as a result.”

The matched sample used to develop the ADP National Employment Report was derived from ADP payroll data, which represents 460,000 US clients employing nearly 26 million workers in the US. The June total of jobs added was revised from 692,000 to 680,000.

The mission of the ADP Research Institute is to generate data-driven discoveries about the world of work, and to derive reliable economic indicators from these insights.

Fibre2Fashion News Desk (KD)