Small Business Job Growth Turns Negative First Time Since COVID Lockdowns; ADP Employment Report

ADP's Employment report for July was disappointing, showing the addition of just 122k jobs (well below the 150k expected and down from the 155k added in June).

Source: Bloomberg

That 122k addition is the weakest since January and the trend in job growth is not your friend with more sectors showing job losses...

Perhaps of most note is the fact that small business job growth is now negative YoY...

Source: Bloomberg

On the bright side, wage inflation continues to slow...

“With wage growth abating, the labor market is playing along with the Federal Reserve's effort to slow inflation,” said Nela Richardson, chief economist, ADP.

“If inflation goes back up, it won't be because of labor.”

Source: Bloomberg

Finally, it is worth noting that ADP has been serially below BLS data for the last 12 months...

Source: Bloomberg

One wonders which is 'real'?