Private wage data (ADP) reportedly performed poorly as the increase in private employment fell short of expectations in July. The increase in employment was somewhat limited due to the lack of raw materials and workers.
This indicates signs that the recovery is slowing in economic activity with limited economic stimulus and the Covid-19 pandemic infection returning to concern following the emergence of the Delta variant.
Based on data released in the ADP Report on Wednesday, wage payments in private sector jobs increased by 330,000 jobs. This reading is far off the target of economists who are targeting an increase of 695,000 in October. ADP data in June was revised to show 680,000 jobs added.
So far nearly half of the U.S. population has been fully vaccinated, indirectly driving an increase in labor demand. However, the recent surge in Covid-19 cases is driven by the spread of Delta variants inhibiting job growth.
The ADP report was developed in conjunction with Moody’s (NYSE: MCO) Analytics and published ahead of a more comprehensive employment report to be released this Friday.
Based on a Reuters survey, NFP data is expected to record an increase of 130,000 to 880,000 jobs in July. At the same time emphasize that the market situation is still ambiguous.
Initial claims for state unemployment benefits changed little between mid -June and mid -July. But overall, the number of people who continued to benefit from assistance decreased between those periods.
