A new private survey from ADP Employer Services highlighting employment from July estimates that around 114,000 workers were added to payrolls, according to Bloomberg. This represents a slightly slower hiring rate than in June, when 145,000 employees were added.
The findings have sparked new worries that consumers – whose spending fuels 70 percent of the economy – will lose confidence or not have enough funds to continue aiding in the recovery.
Of course, the survey is just an estimate. A total of 39 economists were interviewed to collect their opinions on the most likely numbers for July. Sometimes, there are enormous discrepancies, as in January, when they overestimated employment growth by 137,000 jobs.
The forecast comes after another report showed that July saw the largest number of firings in 16 months, rising 59 percent from June 2010 to 66,414. Employees in the pharmaceutical industry appeared to be the hardest hit, as evidenced by Merck & Co.'s decision to lay off 13,000 workers.
"The most recent data attest to the continuing weakness of the labor market," Federal Reserve Chairman Ben Bernanke said recently. "It's improving very slowly in terms of jobs regained. Wages are very stagnant and that's affecting consumer spending and consumer confidence. There is also ongoing uncertainty about the durability of the recovery."
Stocks have been unstable lately, too. Most of the ups and downs were related to the debt deal, as both parties politicized the matter and played chicken with the country's credit rating. While some agencies like Moody's have reaffirmed the USA's AAA status – meaning that national assets are safe for investments – there is still some uncertainty for long-term financial power.
While the market rose upon news of the agreement, it dipped again yesterday. Wednesday shows slightly brighter prospects, but job reports could sink any significant growth.