ADP Report Points to Slower Job Growth
Private sector employers added 122,000 jobs in December, falling short of the 136,000 forecast by economists. This marked the smallest increase since August, down from the revised 146,000 in November. ADP also reported that wage growth slowed to its weakest pace since July 2021.
“The labor market downshifted to a more modest pace of growth,” noted ADP’s chief economist Nela Richardson. This cooling in hiring and pay growth could ease inflationary pressures, reinforcing expectations of a softer Fed approach.
Jobless Claims Show Labor Market Stability
Despite the slowdown in hiring, jobless claims painted a mixed picture. Initial unemployment filings dropped to 201,000 for the week ending January 4, lower than the 215,000 expected by economists. This marked the lowest level in nearly a year.
Continuing claims, however, rose by 33,000 to 1.87 million, suggesting some workers are struggling to find new employment. The dip in initial claims reflects employer reluctance to cut staff, indicating lingering strength in the labor market.
