U.S. private sector job growth slows as wage growth weakens
(MENAFN) In June, the U.S. private sector added fewer jobs than anticipated, marking a slowdown in employment growth as reported by the ADP National Employment Report on Wednesday. The data showed an addition of 150,000 jobs last month, down from an upwardly revised 157,000 jobs in May (originally reported as 152,000). Economists had expected an increase of 163,000 jobs, making June's figures the lowest since January.
Alongside the moderate job growth, wage growth also decelerated to its slowest pace in nearly three years. Wages for workers who remained employed rose by 4.9 percent on an annual basis in June, compared to a 5 percent growth rate recorded in the previous month. This marks the weakest growth rate since August 2021, reflecting a broader trend of easing wage pressures in the labor market.
In addition to the ADP report, data from the U.S. Department of Labor highlighted a rise in initial jobless claims, further underscoring economic challenges. Last week, new claims for unemployment benefits increased to 238,000, exceeding expectations of 234,000. These indicators collectively suggest a nuanced picture of the U.S. labor market, characterized by softer job creation and slowing wage growth amid ongoing economic uncertainties.
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