WASHINGTON– U.S. private-sector employment fell unexpectedly in July, payrolls firm ADP reported on Wednesday, while wage gains slowed further.
Job creation in July was 122,000, down from 155,000 in June, according to revised figures that showed a weaker-than-expected result, the report said.
A cooling in the job market could encourage the Federal Reserve (Fed, central bank) to begin lowering interest rates, as markets expect to happen in the coming months after keeping them at their highest level in more than two decades.
US authorities are aiming to contain inflation in a sustainable manner to reach their 2% target, while maintaining the delicate balance between increasing demand and deepening the recession.
“With wage income declining, the labor market is supporting the Federal Reserve’s efforts to curb inflation,” ADP chief economist Nela Richardson said in a statement.
Year-over-year wage increases slowed to 4.8% in July, the lowest rate in three years, according to ADP. As for those who changed jobs, their wage increases slowed to 7.2% in July, down from 7.7%.
Most of the new jobs were created in the service industry.
Source: With information from AFP.
