Home News US Private Payrolls Growth Slows in July

US Private Payrolls Growth Slows in July

US Private Payrolls Growth Slows in July

U.S. private payrolls increased far less than expected in July, likely constrained by shortages of workers and raw materials.

Private payrolls rose by 330,000 jobs last month, the ADP National Employment Report showed on Wednesday. Data for June was revised slightly down to show 680,000 jobs added instead of the initially reported 692,000. Economists polled by Reuters had forecast private payrolls would increase by 695,000 jobs.

Nearly half of the population has been fully vaccinated against COVID-19, boosting demand for workers as Americans venture outside their homes. But new COVID-19 cases are surging across the country, driven by the Delta variant of the coronavirus.

Employers are struggling to find willing workers to fill a record 9.2 million job openings even as 9.5 million people are officially unemployed, a disconnect caused by the pandemic. Scarce raw materials, especially in the automobile sector, are hampering production.

The ADP report is jointly developed with Moody’s Analytics and was published ahead of the Labor Department’s more comprehensive, and closely watched employment report for July on Friday. But it has a poor track record predicting the private payrolls count in the department’s Bureau of Labor Statistics (BLS) employment report because of methodology differences.

According to a Reuters survey of economists, private payrolls likely increased by 750,000 jobs in July after rising 662,000 in June. With government employment expected to have increased by about 130,000, thanks to education-related hiring, that would lead to overall payrolls advancing by 880,000 jobs in July. The economy created 850,000 in June.

July’s nonfarm payrolls estimate is highly uncertain, with labor market indicators mixed. Data from Homebase, a payroll scheduling and tracking company, showed its employees working index rising moderately in July compared to June.

Initial claims for state unemployment benefits were little changed between mid-June and mid-July when the government conducted its survey for July’s employment report. But the number of people continuing to receive benefits after an initial week of aid fell considerably between that period.

In addition, a survey from the Institute for Supply Management on Monday showed its measure of manufacturing employment rebounded in July. The Conference Board’s labor market differential, derived from data on consumers’ views on whether jobs are plentiful or hard to get, in July hit its highest level since 2000.

Education payrolls typically fall by at least 1 million in July, before adjusting for seasonal fluctuations, as schools and universities close for summer. This year, however, many students are in summer school catching up after disruptions caused by the pandemic. Economists anticipate a small decline in education employment, which would boost the seasonally adjusted payrolls for the sector.

“We should also keep in mind that the ADP data on the private sector should not capture strength in education-related government employment that we expect to be evident in the BLS data,” said Daniel Silver, an economist at JPMorgan in New York.

Eskalera, a Startup Led by Goldman Sachs’ Former HR Head Has Launched a Diversity and Inclusion Index

Eskalera, a technology startup led by Goldman Sachs former human resources head Dane Holmes, has launched an index to measure corporate diversity and inclusiveness,...

HSBC to Remove 35,000 Jobs Amidst Covid-19 Crises

HSBC Holdings Plc has restarted cutting as many as 35,000 jobs, three months after the coronavirus outbreak forced it to pause a long-awaited overhaul...

Genpact Offers Its Internal Skill Training Program Globally for Everyone

Genpact has announced Adapt and Rise, a role-based online learning platform that leverages Genpact's expertise honed from delivering real-world change for hundreds of clients....

San-Francisco Based Learning Platform Degreed Has Raised $32 Million in New Funding

The upskilling platform, Degreed, has announced $32 million in new funding in direct response to overwhelming demand for better skill insights, talent mobility, and...

Research Shows the Implications of Workplace Layouts on Employee Productivity and Overall Performance

As some workplaces prepare for the gradual return of employees and overhaul office layouts and seating plans, research has shown this could also have...

Employee Concierge ‘Back Technologies’ Integrates Automation Into Internal HR and Other Support Tasks

Companies are under increasing pressure to automate workflows and digitally service their employees, particularly in light of trends toward remote work. It takes an...

HR Strategies to Help Your Business Navigate the New ‘Normal’

No business is immune to the massive changes resulting from the health crisis. Organizations have proven themselves to be agile, and employees have demonstrated...

The Importance Of Diversity And Inclusion In HR, Hiring, Talent Management: Thoughts From A Top Expert

Michael C. Hyter is one of today’s best-known experts on inclusion and diversity and the author of The Power of Choice: Embracing Efficacy to Drive Your Career and The...

HR Expert Highlights Actionable Steps to ‘Make Real Change’ Against Racism in Your Workplace

Kyra Leigh Sutton, Ph.D., is a faculty member at the Rutgers University School of Management and Labor Relations, where she teaches human resources courses...

Adidas Employees Want Company to Investigate HR Chief for Response to Racial Issues

A group of Adidas employees from around the globe is asking the company to investigate its chief human resources officer, as part of a...