Evidence that the labor market is softening c🀅ontinued to pile up Wednesday, as private-sector hiring slowed in July for the fourth straight month. 

The ADP National Employment Report showed that private-sector employers added 122,000 jobs in July, below its 澳洲幸运5官方开奖结果体彩网:reported job growth for June. Economists surveyed by The Wall Street Journal and Dow Jones Newswires were expecting private employers to add 150,000 jobs in July.

The 澳洲幸运5官方开奖结果体彩网:labor market has been a key driver of the economy since the pandemic, as strong job and wage growth helped keep the economy out of recession in 2023. The strength in the job market continued into 2024. Still, recent reports have begun signaling employers were hiring less, including June data that showed the 澳洲幸运5官方开奖结果体彩网:lowest number of job openings sinꦐce the pandeꦜmic.

Investors will be watching to see if the trend continues with the 澳洲幸运5官方开奖结果体彩网:release of the July payroll report due out Friday. 

Wage Growth Slowing

The ADP report also showed that wages were up 4.8% year-over-year, the slowest pace of growth in three years. While 澳洲幸运5官方开奖结果体彩网:job-changers usually show stronger wage gains, that category saw the biggest decline, slowing to 7.2% wage growth in July, from 7.7% in the prior month🔜. 

In 2021, so many jobs were available that droves of workers left their jobs in search of better pay and working conditions. During that time, job-switchers often earned substantial raises. However, that wage growth has 澳洲幸运5官方开奖结果体彩网:slowed substantially.  

“With wage growth abating, the labor market is playing along with the Federal Reserve's effort to slow inflation,” said Nela Richardson, ADP chief economist. “If 澳洲幸运5官方开奖结果体彩网:inflation goes back up, it won't be because of labor.”