ADP non-farm payroll, which has been dubbed "little non-farm payroll", has declined for the third consecutive month, bringing another piece of good news to the Fed.

On Wednesday, July 3, the American research institution ADP released a report showing that the number of people employed by ADP in June increased by 150,000, much lower than the expected 165,000, and slightly lower than the previous value of 152,000. This is the third consecutive month of decline in ADP employment and the lowest level in four months.

"Job growth is solid, but it's not universal. Without rebounds in leisure and hospitality sector hiring, June would have been a gloomy month," said ADP's chief economist, Nela Richardson, in the report.

There was little market volatility after the data was released.

The ADP report released more signals of a gradual cooling in the labor market. Federal Reserve Chairman Powell said in a panel discussion at a European Central Bank conference on Tuesday that the US labor market has achieved "meaningful" supply-demand balance.

Specifically, the service industry once again became the industry with the highest number of new jobs, with ADP's service industry adding 136,000 new jobs in June, far higher than the manufacturing industry's 14,000.

At the same time, the average hourly earnings for employees who stayed in their jobs in June rose by 4.9% year-on-year, the slowest growth rate since August 2021. The wage growth of job-switching employees also slowed down, to 7.7%.

There are sporadic signs that more and more American companies are wielding the "layoff" sword due to cost-cutting and economic weakness.

Data released Wednesday night showed that US Challenger company cut 48,786 jobs in June. Excluding the peak period of the pandemic in 2020, this was the highest number of layoffs announced in June since 2009.

Editor/Emily