US private payrolls increase in July
Private payrolls rose by 104,000 jobs last month after a revised 23,000 decline in June. Economists polled by Reuters had forecast private employment increasing 75,000 following a previously reported drop of 33,000 in June.
The ADP report, jointly developed with the Stanford Digital Economy Lab, was published ahead of the more comprehensive employment report for July due to be released on Friday by the Labor Department's Bureau of Labor Statistics. There is no correlation between the ADP and BLS employment reports.
The labour market has lost steam amid an unsettled economic outlook stemming from import tariffs. A survey from the Conference Board on Tuesday showed the share of consumers viewing jobs as 'hard' to get jumped to the highest level in nearly 4-1/2 years in July. That is consistent with the high number of people collecting unemployment checks.
A Reuters survey of economists expects the BLS' employment report to show nonfarm payrolls increased by 110,000 jobs in July after rising by 147,000 in June. The unemployment rate is forecast to increase to 4.2 per cent from 4.1 per cent in June.
Economists expect the Federal Reserve will keep its benchmark interest rate in the 4.25 per cent-4.50 per cent range after the end of a two-day policy meeting later on Wednesday, resisting pressure from President Donald Trump to lower borrowing costs. The Fed cut rates three times in 2024, with the last move coming in December. REUTERS
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