U.S. job market recovery appears to be slowing, services sector powering ahead

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U.S. private employers hired far fewer workers than expected in July as companies exhausted loans to help with wages and new COVID-19 infections flared up across the country, supporting the view that the nascent economic recovery was faltering.

FILE PHOTO: Corporate recruiters gesture and shake hands as they talk with job seekers at a Hire Our Heroes job fair targeting unemployed military veterans and sponsored by the Cable Show, a cable television industry trade show in Washington, June 11, 2013. REUTERS/Jonathan Ernst/File Photo

The ADP National Employment Report showed private payrolls increased by 167,000 jobs last month after jumping by 4.314 million in June. Economists polled by Reuters had forecast private payrolls would increase by 1.5 million in July. California, Texas and Florida account for a third of the nation’s employment. Labor markets in the Midwest have been strong, but that could change as the region battles a surge in new COVID-19 cases.

The ISM said businesses remained concerned about the pandemic, but “are mostly optimistic about business conditions and the economy.” The ISM, however, noted that sentiment varied across industries, as companies were impacted differently. Stocks on Wall Street were trading higher on the services industry expansion and Disney’s surprise quarterly profit. The dollar .DXY slipped against a basket of currencies. U.S. Treasury prices fell.Though the ADP report, jointly developed with Moody’s Analytics, has a poor track record forecasting the private payrolls component of the government’s employment report, it added to a plethora of government and private sector reports indicating a significant deceleration in job growth in July.

“The ADP report reinforces our view that the economy has lost momentum in recent weeks following a period of strong growth,” said Daniel Silver, an economist at JPMorgan in New York.

 

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Slowing? When did it start growing?

no shit everything is closed !!!

You mean the fake recovery fueled by states prematurely re-opening and now are forced to lock down again?

Job market recovery, eh? Wow, I'm wishing...

What he did again?

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