The numbers: Job growth in the U.S. private sector slowed in July, possibly due to the rising number of coronavirus infections. Private sector employment rose 167,000 jobs in July, Automatic Data Processing Inc. reported. Wednesday. Profits were well below economists’ forecasts surveyed by Econoday expecting a profit of 1.9 million jobs. According to ADP data, the number of jobs was 4.3 million in June and 3.3 million in May after a loss of 19.4 million in April.
What happened: Goods producers added just 1,000 jobs last month, while service producers added 166,000.
By size, private sector jobs in July consisted of 63,000 at small employers and 129,000 at large employers. Medium-sized employers lost 25,000 jobs.
Big picture: Economists use ADP data to get an indication of the Labor Department’s monthly employment report, released Friday, which includes government jobs in addition to the private sector. ADP’s signals were distorted during the pandemic. Economists surveyed by MarketWatch expect the government report to show that employment in the non-agricultural sector increased by 1.75 million jobs last month, compared with a profit of 4.8 million in June and an increase of 2.7 million in May . ADP missed the May gains and missed June’s gains. The unemployment rate in June was 11.1%, compared to a post-war peak of 14.7% in April.
Market response: Stocks would open higher on Wednesday. The Dow Jones Industrial DJIA,
rose 189 points on Tuesday.