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ADP: Private sector employment rises 185,000 in July

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ADP:  Private sector employment rises 185,000 in July

Middle market companies add 62,000.

According to payroll processing giant ADP, US private employment rose by 185,000 in July, missing analysts’ expectations of a 215,000 increase.  Middle market companies added 62,000 jobs, or  34% of the total.

Goods-producing employment rose by 8,000 jobs in July, after adding 13,000 in June. The construction industry added 15,000 jobs in July, down from 17,000 last month. Meanwhile, manufacturing added 2,000 jobs in July, after gaining 9,000 in June.

Layoffs in the energy industry and weaker job gains in manufacturing are behind the slowdown.

Service-providing employment rose by 178,000 jobs in July, down from 216,000 in June. The report indicated that professional/business services contributed 42,000 jobs in July, down from June’s 61,000. Trade/transportation/utilities grew by 25,000, just over half of the previous month’s 47,000. The 10,000 new jobs added in financial activities was a drop from last month’s 16,000.

"July employment growth was slower than June, but is still in line with what we have seen since the first of the year,” said Carlos Rodriguez, president and chief executive officer of ADP. “Notably, large businesses with more than 500 employees had their strongest job gains since last December and were almost double the June number.”

Mark Zandi, chief economist of Moody’s Analytics, said, “Job growth is strong, but it has moderated since the beginning of the year. Layoffs in the energy industry and weaker job gains in manufacturing are behind the slowdown.  Nonetheless, even at this slower pace of growth, the labor market is fast approaching full employment.”

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