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August 02, 2023 @ 17:25 +03:00
Ahead of Friday’s official employment report, ADP provided another robust estimate for July. It is said that the private sector added 324K jobs last month, down from 455K the previous month. The pace of hiring rose rather than fell in June and July, despite tighter monetary policy that should have slowed the economy.
Manufacturing and finance have been flat since last year, and professional and business services have joined them this year. There is a boom in leisure and tourism, active recruitment in mining, and employment in trade, transport and utilities are growing as part of the trend.
By size, companies with 50-249 and 20-49 employees are hiring the most. Large firms (500+) have been contracting for several months, including -67K in July, while medium-sized firms (250-499) are down by -14K and flat for the rest of the year.
While the report is much stronger than expected and better than the long-term trend, we also highlight large and medium-sized companies’ growing difficulties. They may soon be moving down the food chain.
The FxPro Analyst Team