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Dow Jones NewsJul 2, 12:22 PM UTC
MW ADP says economy loses jobs for the first time since2023 due to trade wars
By Jeffry Bartash
Companies eliminated 33,000 jobs in June
Privately run businesses reduced jobs in June for the first time in more than two years, as ongoing U..S. trade wars created a "hesitancy to hire and a reluctance to replace departing workers," the payroll processor ADP said.
Economists surveyed by the Wall Street Journal had forecast 100,000 new jobs.
The decline in employment suggests there hasn't been any improvement in a softening labor market even after the Trump administration dialed back the most extreme tariffs.
Companies are filling fewer open jobs than they did a year ago and they are unlikely to hire lots more people until the economy speeds up.
Wall Street economists and the Federal Reserve believe the economy will grow more slowly in 2025. Gross domestic product shrank in the first quarter for the first time in three years.
Big picture: ADP is a poor predictor of the official U.S. jobs report, but the government is also expected to confirm a slowdown in hiring this year. Economists forecast just 110,000 new jobs in June.
The report will come out a day early, on Thursday, because of the July 4 holiday.
Market reaction: The Dow Jones Industrial Average DJIA and S&P 500 SPX were set to rise slightly in Wednesday trading.
-Jeffry Bartash
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07-02-25 0822ET
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