Private payrolls in the US rose more than expected in July, indicating continued labor market resilience that could protect the economy from a recession.
Private payrolls rose by 324,000 jobs last month, according to ADP's National Employment report on Wednesday. Data for June was revised downwards to show the addition of 455,000 jobs compared to the 497,000 previously reported. Economists have even predicted that private employment will increase by 189,000.
The labor market has only gradually slowed even though interest rates have risen by 525 basis points since March 2022. The government reported on Tuesday that there were 1.6 job vacancies for every unemployed person in June, little changed from May. A survey last month showed consumers were very optimistic about the labor market in July.
The ADP report, developed in conjunction with Stanford's Digital Economy Lab, was published ahead of the Labor Department's release of a more comprehensive and widely watched jobs report for July on Friday.
According to a Reuters survey of economists, the Bureau of Labor Statistics is expected to report that private sector payrolls increased by 179,000 jobs in July. With further increases in government employment, total nonfarm payrolls are expected to increase by 200,000 jobs last month after increasing by 209,000 in June.
