U.S. businesses sharply reduced hiring last month, suggesting that resurgent COVID-19 infections slowed the economic recovery as many states closed parts of their economies again and consumers remained cautious about spending.
U.S. firms added just 167,000 jobs in July, payroll processor ADP said Wednesday, far below June's gain of 4.3 million and May's increase of 3.3 million. July's limited hiring means the economy still has 13 million fewer jobs than it did in February, according to ADP, before the viral outbreak intensified.
ADP’s figures suggest that the job market's recovery is stalling and will likely fuel concerns that the government’s jobs report, to be released Friday, will show a similar slowdown. Economists expect the government to report that employers added 1.8 million jobs, according to a survey by data provider FactSet. That would typically be considered a huge gain, but in this case it would be somewhat disappointing after hiring reached 4.8 million in June, and 2.7 million in May.
Hiring collapsed among companies of all sizes and in nearly all industries. A category that mostly includes restaurants, bars and hotels added just 38,000 jobs last month, after gaining more than 3 million in May and June combined.
The are other signs the coronavirus surge in July has dealt a setback to the economy and job market: The number of people applying for unemployment benefits has increased for the past two weeks, after falling steadily for three months. Credit and debit card data indicates that consumer spending leveled off last month.
And hiring by small businesses also flattened in July, according to real-time data compiled by Homebase, a company that provides scheduling software to small businesses.
Much like all the upheaval shaking the world, the huge swings rocking Wall Street may feel far from normal. But, for investing at least, this is normal.
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A Michigan judge is putting sponges in the hands of shoplifters and ordering them to wash cars in a Walmart parking lot when spring weather arrives. Genesee County Judge Jeffrey Clothier hopes the unusual form of community service discourages people from stealing from Walmart. The judge also wants to reward shoppers with free car washes. Clothier says he began ordering “Walmart wash” sentences this week for shoplifting at the store in Grand Blanc Township. He believes 75 to 100 people eventually will be ordered to wash cars this spring. Clothier says he will be washing cars alongside them when the time comes.
