American businesses expanded their payrolls less than expected, a key measure of private sector hiring indicated Wednesday.
ADP Research said that private payrolls rose by 44,000 in July, missing estimates for 65,000 jobs. The prior month’s estimate was revised down slightly from 98,000 to 95,000.
The lower-than-expected payroll growth may not reflect a lower demand for labor but a lower supply of available workers. The report showed wage growth for workers who switched jobs picked up to the strongest pace in nearly a year, a sign that demand may be outstripping supply.
“Job-changers are highly sensitive to real-time economic conditions, and their rapid pay growth implies supply constraints in parts...
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