(MENAFN- The Peninsula)
AFP
Washington: Private sector employment cooled unexpectedly last month, payroll firm ADP said Wednesday, adding that job creation in this area has slowed for a third month.
Job gains came in at 150,000 in June, down from May's 157,000 figure which had been revised upwards, said the report.
Policymakers have been looking to a cooler labor market -- alongside lower inflation -- as they mull the right time to begin interest rate cuts.
The latest number was below a consensus estimate of 163,000 job gains, according to Briefing.
The current trend, if it persists, could fuel optimism that the first rate reductions may start sooner rather than later -- after the Federal Reserve has held rates at the highest level in more than two decades in recent months.
"Job growth has been solid, but not broad-based," said Nela Richardson, ADP chief economist, of the latest numbers.
But she added that without a hiring rebound in leisure and hospitality, "June would have been a downbeat month."
Most of the jobs added were in service industries, with roles in leisure and hospitality bouncing the most, by 63,000.
Other segments like professional and business services added 25,000 jobs.
The overall goods-producing sectors added 14,000 jobs, with losses in natural resources and mining, as well as in manufacturing, offset by an increase in construction.
"The data are pointing to ongoing positive private sector job growth, at a steady pace so far this year," said Rubeela Farooqi, chief US economist at High Frequency Economics, in a note.
She said she expects job growth to remain positive while unemployment stays low, which "should be supportive of economic activity this year."
Meanwhile, wage gains for workers who stayed in their jobs came in at 4.9 percent last month, the slowest growth rate since August 2021, said ADP.
For staff who changed roles, pay gains eased to 7.7 percent, the report said.
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