Private sector payrolls rose at a faster pace than expected in July, but a surprising increase in layoffs in the sector helped push the number of announced U.S. jobs cuts to a 16-month high, separate reports showed Wednesday.
The data come ahead of Friday's closely watched July jobs report, which is expected to show 85,000 nonfarm payrolls and a 9.2 percent unemployment rate.
It is further bad news for the U.S., which teetered on the brink of defaulting on its debt repayments before finally rubberstamping a deal to raise the debt ceilingand cut public spending by more than $1 trillion.
The pace of private sector job growth slowed in July with employers adding 114,000 positions, a report by a payrolls processor showed.
Economists surveyed by Reuters had forecast 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. Economists often refer to the report to fine-tune their expectations for the payrolls numbers, though it is not always accurate in predicting the outcome.Page 1 of 5 | Next Page