The ADP report shows that the labor force demand is cooling down. In June, American companies added employees at a milder pace, and wage growth slowed, which is consistent with the gradual cooling of labor demand. The report further indicates that the job market is gradually cooling down, and the unemployment rate rose to 4% in May, the highest level in more than two years. The number of people applying for unemployment benefits again has also increased, indicating that unemployed Americans need more time to find work. Chairman of the Federal Reserve Powell said yesterday that there has been "substantial" progress in achieving supply-demand balance in the labor market. At the same time, there are sporadic signs that companies are laying off workers due to cost cutting and weakening economic conditions. Data from Challenger, Gray & Christmas Inc. shows that US employers announced layoffs of 48,786 people in June, the highest number for any June since 2009, not including the most serious pandemic year of 2020. Non-farm data will be released on Friday, and decision makers will further understand the labor market conditions at that time.