Jobs data give mixed signals on economy
Private employers added more jobs than expected in July, though fewer than in June, but planned layoffs rose to a 16-month high, according to separate surveys released on Wednesday, Reuters reported.
The data comes ahead of the U.S. government’s key jobs report on Aug. 5, which is forecast to show that the pace of job creation accelerated last month. The economy is expected to have gained 85,000 jobs, not enough to push the unemployment rate below its current 9.2 percent.
U.S. private employers added 114,000 jobs in July, topping economists’ expectations, a report by payroll processor ADP showed on Wednesday.
Economists surveyed by Reuters had forecast that the ADP National Employment Report would show a gain of 100,000 jobs. June’s private payrolls were revised down to an increase of 145,000 from the previously reported 157,000. The report is jointly developed with Macroeconomic Advisers LLC.
A separate report on Wednesday showed the number of planned layoffs at U.S. firms rose to a 16-month high in July as sectors which had been seeing fairly few layoffs unexpectedly bled jobs.
Employers announced 66,414 planned job cuts last month, up 60.3 percent from 41,432 in June, according to a report from consultants Challenger, Gray & Christmas Inc.
July’s job cuts also were up from the same time a year ago, rising 59.4 percent from the 41,676 job cuts announced in July 2010, and recording the largest monthly total since March, 2010.
Layoffs in the pharmaceutical and retail sectors overtook nonprofit and government job cuts last month, accounting for 20.32 percent and 16.93 percent of announcements, respectively.
For 2011 so far, employers have announced 312,220 cuts, down 8 percent from the first seven months of 2010.