The U.S. private payrolls rose more than expected in July, indicating solid labor market, even as job creation is moderating.
Businesses across the country added 179,000 jobs in July, more than 176,000 created in June, according to the Automatic Data Processing Inc. Economists had earlier predicted 171,000 job creation in July.
“Job growth remains strong, but is moderating as the economy approaches full employment,” said Mark Zandi, a chief economist of Moody’s Analytics.
The general overview suggests job growth has moderated, but experts expect U.S businesses to continue to grow payrolls at a moderate pace as employers look to hire from a shrinking pool of workers.
Continuous increased in jobs has fuel consumer spending that has been powering the US economy and increased consumption by 4.2 percent in the second quarter of the year, according to the Commerce Department report last week.
The Bureau of Labor Statistic’s employment situation report is due on Friday. Analysts expect Non-Farm Payrolls to add 180,000.