Recent data has shown some indicators of this slowdown. Data from ADP on Wednesday indicated that the private sector added 104,000 jobs in July, a number that exceeds expectations of 75,000, and marks a notable recovery after a loss of 23,000 jobs in June. However, the overall momentum for employment in the private sector has seen a decline in recent months.
"Nela Richardson," chief economist at ADP, stated during a call with reporters at Yahoo Finance: "We are now in a labor market that has reset itself to a lower average level. But the good news is that this level is still sufficient to support consumers, and this will ultimately be the true test of the health of the labor market: Will consumers continue to spend?".
A decline in available jobs and a decrease in the employment rate
On another front of labor market data, a report from the Bureau of Labor Statistics showed there were 7.44 million job openings at the end of June, down from 7.71 million the previous month. The employment rate also fell to 3.3% compared to 3.4%, the lowest level since November 2024.
