Job Market Takes a Breath: Recent Reports Show Slowing Growth but Remain Strong

While the labor market may be slowing down this summer, it is not stagnant. Recent reports from various sources indicate a slight decline in job availability. The ADP employment report revealed that the private sector added 150,000 jobs in June, slightly below economists’ expectations. Most new jobs came from the leisure and hospitality sector.

Another report from Challenger, Gray & Christmas showed that layoffs were down 23.6% in June compared to the previous month. Employers cut 48,786 jobs, with the most layoffs happening in consumer products manufacturing and technology. Additionally, first-time unemployment benefit claims increased, leading to a rise in the four-week moving average that economists use to measure job losses.

Despite these slight declines, experts believe that the labor market remains relatively strong. Nancy Vanden Houten, lead U.S. economist for Oxford Economics, stated that although there has been an increase in initial claims, it remains below the level that would signal a significant slowdown in job growth. This allows the Federal Reserve to be patient in making decisions about interest rates, although they are monitoring the labor market closely for any unexpected changes.