U.S. companies added far fewer jobs than expected in July, indicating persistent hiring obstacles despite broader improvement in the economy.
Businesses’ payrolls increased by 330,000 last month, the smallest gain since February, after a revised 680,000 gain in June, according to ADP Research Institute data released Wednesday. The figure fell short of all economists’ estimates in a Bloomberg survey. The median estimate was for a 690,000 rise.
The slowdown in hiring underscores the challenges of a full labor market recovery. Firms are trying to keep pace with an unleashing of pent-up demand, but it will take time to fill a now-record number of open positions.
The ADP data showed a broad moderation in employment growth. While the report and government data don’t always move in lock-step, the smaller advance could temper expectations for an outsize gain in official payrolls figures on Friday. The hiring deceleration was acute in leisure and hospitality, an industry that has the longest road to recovery.
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{Matzav.com}
