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ADP: Private sector employment rises 179,000 in July

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ADP:  Private sector employment rises 179,000 in July

Middle market companies add 68,000.

According to payroll processing giant ADP, US private employment rose by 179,000 in July, exceeding analysts’ expectations of a 170,000 increase. Middle market companies added 68,000 jobs, or 38% of the total, during the month.

Goods-producing employment was down by 6,000 jobs in July, following June losses of 28,000. The construction industry lost 6,000 jobs, following June losses of 4,000 jobs. Meanwhile, manufacturing gained 4,000 jobs after losing 15,000 the previous month.

The nation’s biggest economic problem will soon be the lack of available workers.”

Service-providing employment rose by 185,000 jobs in July, fewer than June’s 203,000 jobs. The report indicates that professional/business services contributed 59,000 jobs, down from June’s 78,000. Trade/transportation/utilities increased by 27,000 jobs in July, down from 41,000 jobs added the previous month. Financial activities added 11,000 jobs, following last month’s gain of 9,000 jobs.

“This month’s employment number falls short of the 12-month average primarily because of slowing in small business hiring,” said Ahu Yildirmaz, vice president and head of the ADP Research Institute. “As the labor market continues to tighten, small businesses may increasingly face challenges when it comes to offering wages that can compete with larger businesses.”

Mark Zandi, chief economist of Moody’s Analytics, said, “Job growth remains strong, but is moderating as the economy approaches full employment. Businesses are having a more difficult time filling open job positions, which are near record highs. The nation’s biggest economic problem will soon be the lack of available workers.”

 

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