U.S. private payrolls increased more than expected in July, pointing to continued labor market resilience that could shield the economy from a recession.
Private payrolls rose by 324,000 jobs last month, the ADP National Employment report showed on Wednesday. Data for June was revised lower to show 455,000 jobs added instead of the previously reported 497,000. Economists polled by Reuters had forecast private employment would increase by 189,000.
The labor market is only slowing gradually despite 525 basis points worth of interest rate increases from the Fed since March 2022. The government reported on Tuesday that there were 1.6 job openings for every unemployed person in June, little changed from May. A survey last month showed consumers very bullish about the labor market in July.
The ADP report, jointly developed with the Stanford Digital Economy Lab, was published ahead of the release on Friday of the Labor Department's more comprehensive and closely watched employment report for July.
According to a Reuters survey of economists, the Bureau of Labor Statistics is expected to report that private payrolls increased by 179,000 jobs in July. With further gains anticipated in government employment, total nonfarm payrolls are forecast to have risen by 200,000 jobs last month after increasing by 209,000 in June.
