US economy adds 42,000 jobs in July: ADP

WASHINGTON: The US economy created more private jobs than expected in July but hiring has not been rapid enough to ease a severe jobless rate, payrolls firm ADP said Wednesday.

Some 42,000 private-sector jobs were created following a revised June number of 19,000, ADP said ahead of a key government employment report on Friday.

Most economists had expected 25,000 jobs to be established in July, the sixth consecutive monthly gain amid increasing signs that the US economic recovery is slowing.

But ADP warned that the private job increases so far this year had averaged a modest 37,000, "with no evidence of acceleration."

The government will release the July employment report on Friday with most analysts expecting non-farm payrolls to fall by 87,000 in July and the unemployment rate to edge up to 9.6 percent from 9.5 percent at present.