According to the latest ADP National Employment Report released Wednesday, U.S. companies added 177,000 jobs in July, down from the estimated 195,000. Another report released Tuesday, the Job Openings and Labor Turnover Survey (JOLTS) from the U.S. Labor Department, showed that people quitting their jobs dropped to early 2021 levels showing a decrease of confidence in the job market. Nela Richardson, ADP’s chief economist said, “This month’s numbers are consistent with the pace of job creation before the pandemic. After two years of exceptional gains tied to the recovery, we’re moving toward more sustainable growth in pay and employment as the economic effects of the pandemic recede.” The muted job numbers come after months of tightening from the Federal Reserve which has brought interest rates to a 22 -year high. Even last week, Fed Chair Jerome Powell said that another rate hike might still be forthcoming to ensure inflation doesn’t make a resurgence.
