In June, the US private sector reported a loss of 33,000 jobs, marking the first negative month in more than two years according to ADP. Employers have become hesitant to hire and reluctant to replace departing workers, leading to this downturn. Economists had expected a net gain of 115,000 jobs. While layoffs are still uncommon, signs of stagnant hiring plans are emerging. The projected unemployment rate is set to increase to 4.3%, the highest since October 2021, signaling a shift in the labor market amid changing economic conditions.
US private sector lost 33,000 jobs in June, marking the first negative month in over two years, with hiring plans stalled and layoffs remaining rare.
Economists anticipated a net gain of 115,000 jobs for June, but instead, ADP reported job losses due to hesitancy in hiring and reluctance to replace positions.
Despite the drop in job numbers, pay growth remains unaffected, illustrating a disconnect between hiring slowdown and wage changes in the labor market.
The unemployment rate is projected to rise to 4.3% in June, the highest level since October 2021, according to upcoming labor market reports.
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