A discouraged worker sits in an unemployment office in San Francisco. (Photo: Reuters)
The ADP Nation Employment Report released by payroll processor ADP found the private sector added 185,000 jobs in July, missing Wall Street expectations.
The media economist forecast was looking for an increase of 215,000 jobs.
“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.”
Payrolls for businesses with 49 or fewer employees increased by 59,000 jobs in July, half of the June number. Employment among companies with 50-499 employees increased by 62,000 jobs, down from 78,000 the previous month. Employment gains at large companies – those with 500 or more employees – increased sharply from June, adding 64,000 jobs in July, up from 34,000. Companies with 500-999 added 17,000 jobs after adding 28,000 jobs in June. Companies with over 1,000 employees added 47,000 jobs, almost eight times the weak 6,000 added the previous month.
“Job growth is strong, but it has moderated since the beginning of the year,” the ever optimistic Mark Zandi, chief economist of Moody’s Analytics, said. “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.”
Nevertheless, high-paying jobs continue to lag behind lower-paying, low-wage positions.
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. Service-providing employment rose by 178,000 jobs in July, down from 216,000 in June.
The ADP National Employment Report indicates 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.
