The mini non-farm payroll shows a cooling labor demand, echoing Powell's remarks

News on July 3rd, in June, the pace at which U.S. companies added employees was more moderate and wage growth slowed down, consistent with a gradual cooling of labor demand. The ADP report further indicates that the job market is gradually cooling down, with the unemployment rate rising to 4% in May, the highest level in over two years. The number of people reapplying for unemployment benefits has also increased, indicating that unemployed Americans need more time to find work. Federal Reserve Chairman Powell stated yesterday that there has been "substantial" progress in balancing supply and demand in the labor market. There are sporadic signs that businesses are laying off workers due to cost-cutting and a softening economic situation. Data from Challenger, Gray Christmas Inc., shows that U.S employers announced layoffs of 48,786 people in June. Excluding the worst year of pandemic -2020-, this is the highest number announced for any June since 2009. Non-farm payrolls will be released on Friday when policymakers will gain further insight into labor market conditions.