US Plans $103 Billion Debt Sale

In July, US companies surpassed expectations by adding a higher number of jobs, showcasing the ongoing resilience of the labor market. According to the ADP Research Institute in collaboration with Stanford Digital Economy Lab, private payrolls increased by 324,000 last month, exceeding all estimates in a Bloomberg survey of economists.

The job gains were quite widespread, with a significant boost of 201,000 jobs in the leisure and hospitality sector. Jobs were added in most regions, except the South, and were primarily concentrated among businesses with less than 250 employees.

However, despite the strong job growth, wage growth experienced a slowdown. In July, workers who stayed in their jobs saw a pay increase of 6.2% from a year ago, the slowest rate since November 2021. For those who changed jobs, the median rise in annual pay was 10.2%, the slowest in two years.

ADP’s chief economist, Nela Richardson, noted that the economy is performing better than anticipated, and a robust labor market is supporting household spending. Although pay growth has decelerated, there haven’t been widespread job losses.

While job postings have decreased slightly over the past year, many businesses, especially in the service sector, continue to hire actively to meet consumer demand. Despite challenges like high interest rates and changing spending patterns, companies are reluctant to let go of workers. This indicates the continuing strength and resilience of the labor market amid economic fluctuations.