US Labor Market Shows Signs of Cooling as Hiring Pace Moderates

Recent labor market data in the US indicates a slowdown in hiring and wage growth. ADP Research Institute reports show private companies hired at a more moderate pace in June, with wage increases cooling for both job changers and job stayers. Additionally, recurring unemployment claims have risen for nine consecutive weeks, suggesting difficulties in finding new employment. The data, released ahead of the government’s June employment report, points to weakening demand for workers across various sectors, with notable exceptions in leisure and hospitality. These trends align with Federal Reserve Chair Jerome Powell’s recent comments about a move towards balance in the labor market supply and demand.