Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
Over two-thirds of private employer hiring in July were in companies with fewer than 50 employees while large firms shed workers, another indication of the strength of the economy, ADP chief economist Nela Richardson told reporters Wednesday.
Private firms with fewer than 50 employees added 237,000 workers in the month while firms with more than 500 employees saw a decline of 67,000 jobs, the ADP report said. Overall hiring was notably stronger than expected, with 324,000 jobs added compared to market expectations for 190,000. Leisure and hospitality jobs led gains, with a sharp acceleration in construction, although some weakness was seen in goods producing sectors and manufacturing. The ADP report is not intended as a forecast for the Labor Department's jobs report due Friday.
"Small businesses are such a highlight and a standout in this report," Richardson said. "Hiring challenges for small firms has been part of their growth story. They've been locked out last year by bigger firms that hired and grew. This year it's been a combination of trying to get headcount in the door but also working against a supply of workers that are a bit hesitant to come back to the labor market."
Pay growth also continued to slow in July with job stayers seeing a year-on-year increase of 6.2%, the slowest pace of gains since November 2021 but still double pre-pandemic levels. Job changers saw their pay growth slow to 10.2%. "We're seeing a slowing growth rate now than before," Richardson said.
"For the Fed there's a lot of messages here. A solid labor market, highly fragmented, and pay growth that is coming down, but not back to historical marks."
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.