crucial quote
“Job-changers are highly sensitive to real-time economic conditions, and their rapid pay growth implies supply constraints in parts of the labor market,” Nela Richardson, ADP’s chief economist, said in a statement. “Typical hiring patterns, meanwhile, are changing as employers react to shifting macroeconomic conditions.”
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what to watch for
A broader employment report from the Bureau of Labor Statistics will be published Friday. The U.S. is expected to have added 100,000 jobs in July, a surge from the 57,000 added in June, while the unemployment rate is expected to have settled at 4.2%.
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key background
The Federal Reserve has expressed confidence in the job market as high inflation has become the focus. Central bank officials voted to hold interest rates within their current range last week, though Fed Chair Kevin Warsh has said the Federal Reserve had “no tolerance for persistently elevated inflation.” Some policymakers have signaled a preference for raising interest rates, with three Federal Open Market Committee members dissenting in last week’s votes in favor of a quarter-point hike.
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further reading
ForbesPrivate Sector Employment Surprised Again In June Despite ‘Slowdown’ In New JobsBy Ty Roush